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How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?
65years
56years
45years
57years
Simple interest is given by the formula SI = (pnr/100), where p is the principal, n is the numberof years for which it is invested, r is the rate of interest per annum In this case, Rs. 1250 has become Rs.10,000. Therefore, the interest earned = 10,000 – 1250 = 8750. 8750 = [(1250 x n x 12.5)/100] => n = 700 / 12.5 = 56 years.
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