Join 60,000+ competitive exam aspirants
or with email
Your Cart
Subtotal₹0
Total₹0
Examoogle • User • info@examoogle.com • EE-2024-8821
Chapter 1 of 12 • Page 1 of 248🔒 Protected PDF • Watermarked
Join 60,000+ competitive exam aspirants
How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
3 years
421 years
2 years
443 years
421 years
Calculate the simple interest directly as I=A−P=2040−1500=540, then substitute into T=P×RI×100=1500×8540×100=120540=4.5 years.
Principal (P) = ₹1,500, Amount (A) = ₹2,040, Rate (R) = 8% per annum
T=P×R(A−P)×100
Calculate the simple interest directly as I=A−P=2040−1500=540, then substitute into T=P×RI×100=1500×8540×100=120540=4.5 years.
Confusing Simple Interest with Compound Interest formula or taking the Amount instead of the Interest in the numerator.
Step 1: Identify the given values
We are given the Principal P=1500, the Amount A=2040, and the Rate of interest R=8% per annum.
P=1500,A=2040,R=8%
Step 2: Calculate the Simple Interest
The simple interest I is obtained by subtracting the Principal from the Amount: I=A−P.
I=2040−1500=540
Step 3: Apply the Time formula for Simple Interest
Substitute the values of I, P, and R into the formula T=P×RI×100.
T=1500×8540×100=1200054000=120540=29=421 years
B is correct because the time calculated using the simple interest formula is 4 ½ years.
Always verify whether interest is compounded annually or calculated as simple interest before applying the respective formulas in financial arithmetic problems.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download • 100K+ Aspirants