Arithmetic Aptitude :: Simple Interest
8. 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?
Simple interest is given by the formula SI = (pnr/100), where p is the principal, n is the number of
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*n*12.5)/100]
=> n = 700 / 12.5 = 56 years.