sum of Rs. 7000 is invested in a scheme of simple interest. The rate of interest in this scheme is 20 percent per annum. If Rs. 1750 interest is obtained, then for how many months is the sum Invested?
1. 18
2. 15
3. 21
4. 24
1. 18
2. 15
3. 21
4. 24
Correct Answer – Option 2 : 15
Given:
Principal(P) = Rs. 7000
Rate of interest(R) = 20% per annum
Simple interest = Rs. 1750
Formula used:
Simple interest(SI) = \(\dfrac{P \times R \times T}{100}\)
Calculation:
According to the question:
1750 = \(\dfrac{7000 \times 20 \times T}{100}\)
⇒ T = 175000/140000
⇒ T = 1.25 years = 15 months
∴ Amount was invested for 15 months