Question
A man invests ₹20,000 in a scheme that offers a 10%
simple interest per annum. After how many years will his total amount become ₹30,000?Solution
Let the principal be P = ₹20,000, Total amount A = ₹30,000, Interest = A - P = ₹30,000 - ₹20,000 = ₹10,000. Using the formula for simple interest: Interest = P × r × t / 100. 10,000 = 20,000 × 10 × t / 100, t = (10,000 × 100) / (20,000 × 10) = 5 years. Answer: a) 5 years.
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