An investment becomes Rs.720 after adding a simple interest of Rs.120 earned for a period of time at 5% p.a. How long was the principal invested?
Correct Answer: Description for Correct answer:
Simple Interest earned, SI = Rs.120, Amount = Rs.720, rate of interest r = 5%.
Amount = Principal + Simple interest
Therefore, principal invested, P = 720 - 120 = 600.
Sl = \( \Large \frac{PNR}{100} \), Therefore n = \( \Large \frac{SI \times 100}{P \times r} = \frac{120 \times 100}{600 \times 5} \) = 4 years.
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