In what time Rs. 6000 will give interest of Rs. 720 at the rate of 6% p.a. S.I.?

Options

A. 3 years
B. 2.5 years
C. 2 years
D. 1.5 years

Answer

To find the time it takes for Rs. 6000 to generate Rs. 720 in simple interest at a rate of 6% per annum, we can use the formula for simple interest:

### Step 1: Write down the formula for Simple Interest (SI)
The formula for calculating Simple Interest (SI) is given by:

\[ SI = \frac{P \times R \times T}{100} \]

Where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount (initial investment)
- \( R \) = Rate of interest per annum
- \( T \) = Time (in years)

### Step 2: Substitute the known values into the formula
We know:
- \( SI = 720 \) (the interest earned)
- \( P = 6000 \) (the principal amount)
- \( R = 6\% \) (the rate of interest)

Substituting these values into the formula gives:

\[ 720 = \frac{6000 \times 6 \times T}{100} \]

### Step 3: Simplify the equation
To simplify, we can first multiply both sides by 100 to eliminate the fraction:

\[ 720 \times 100 = 6000 \times 6 \times T \]

This simplifies to:

\[ 72000 = 36000 \times T \]

### Step 4: Solve for T
Now, divide both sides by 36000 to isolate \( T \):

\[ T = \frac{72000}{36000} \]

Calculating this gives:

\[ T = 2 \]

### Conclusion
Thus, the time \( T \) required for Rs. 6000 to generate Rs. 720 in simple interest at a rate of 6% per annum is **2 years**.

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