PRC-2 · Chapter 5 · Question 27 of 50
A student deposited Rs. 10,000 in a simple interest account and earned exactly Rs. 4,000 in interest at a rate of 5% per annum. How many years was the money invested?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) 8 years
Explanation
Using the simple interest formula I = PRT: 4,000 = 10,000 * 0.05 * T. This simplifies to 4,000 = 500 * T. Dividing by 500 gives T = 8 years.
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