Q.At an annual simple interest rate of 8%, how much interest will make the principal amount grow to \(\cfrac{7}{5}\) times its original value? (a) 4 years (b) 5 years (c) 6 years (d) 7 years
Answer: B
Let’s assume the principal amount \((p)=x\) rupees
\(\therefore\) Total amount = \(\cfrac{7x}{5}\) rupees
\(\therefore\) Interest \((I)=\left(\cfrac{7x}{5}-x\right)\) rupees
\(=\cfrac{7x-5x}{5}=\cfrac{2x}{5}\) rupees
Rate of interest \((r)=8\%\)

\(\therefore \) Time \((t)=\cfrac{100\times I}{pr}\)
\(=\cfrac{\cancel{100}20\times \cfrac{2x}{\cancel5}}{x\times 8}\) years
\(=5\) years
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