Question

In how many years will be ₹870 amount to ₹1,044, the rate of interest being `2 1/2` % p.a?

Answer 1

Principal (P) = ₹ 870

Amount (A) = ₹ 1044

∴ S.I. = P − A = ₹ 1044 - ₹ 870 = ₹ 174

Rate (R) = `2 1/2 = 5/2 %` p.a.

∴ Time = `("S.I." xx 100)/("P" xx "R")` 

`= (174 xx 100 xx 2)/(870 xx 5) = 8  "years"`