How long will it take for ₹1,500 to become ₹2,040 at 6% per annum simple interest?

Question

Examoogle · Accepted Answer

The correct answer is Option A: 6 years. Calculate SI as $2040 - 1500 = 540$. Then, $540 \div 1500 = 0.36$. Since the rate is $6\%$, divide $0.36$ by $0.06$ to get $6$ years directly.

Step-by-Step Solution & Concepts:
Shortcut Trick: Calculate SI as $2040 - 1500 = 540$. Then, $540 \div 1500 = 0.36$. Since the rate is $6\%$, divide $0.36$ by $0.06$ to get $6$ years directly.

Formula Used: $$SI = A - P$$ $$T = \frac{SI 	imes 100}{P 	imes R}$$

Given: Principal (P) = ₹1,500, Amount (A) = ₹2,040, Rate (R) = 6% per annum.

Steps: Calculate Simple Interest: Subtract the principal from the total amount to find the interest earned: $SI = 2040 - 1500 = 540$.. Apply Time Formula: Use the formula $T = \frac{SI 	imes 100}{P 	imes R}$ with given values $P = 1500$ and $R = 6$.. Final Calculation: Simplify the expression: $T = \frac{54000}{9000} = 6$.

Answer: A is correct because the calculated time for the interest to accumulate to ₹540 at a 6% rate is exactly 6 years.

Exam Tip: This concept is foundational for Compound Interest problems; always distinguish whether the interest is calculated on the initial principal or the accumulated amount.

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