Q.At an annual interest rate of 5%, in how many years will 520 rupees grow to 611 rupees? (a) 5 years (b) 3\(\cfrac{1}{2}\) years (c) 10 years (d) 8 years
Answer: B
Let’s assume the principal amount \((p)=520\) rupees
Rate of interest \((r)=5\%\)
Interest \((I)=(611-520)=91\) rupees
∴ Time \((t)=\cfrac{100×I}{pr}\)
\(=\cfrac{100×91}{520×5}=\cfrac{7}{2}=3\frac{1}{2}\) years
So, it will take 3.5 years.
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