If amount of Rs 8000 becomes 12000 in certain time period with rate of interest 12.5% then find the time period?

Options

A. 3 year
B. 5 year
C. 4 year
D. 6 year

Answer

To find the time period for which the principal amount of Rs. 8000 becomes Rs. 12000 at a rate of interest of 12.5%, we can follow these steps:

### Step 1: Identify the given values
- Principal (P) = Rs. 8000
- Amount (A) = Rs. 12000
- Rate of interest (R) = 12.5%

### Step 2: Calculate the Simple Interest (SI)
To find the Simple Interest, we can use the formula:
\[ SI = A - P \]
Substituting the values:
\[ SI = 12000 - 8000 = 4000 \]

### Step 3: Use the Simple Interest formula to find time (T)
The formula for Simple Interest is:
\[ SI = \frac{P \times R \times T}{100} \]
We can rearrange this formula to solve for time (T):
\[ T = \frac{SI \times 100}{P \times R} \]

### Step 4: Substitute the known values into the formula
Now, substituting the values we have:
\[ T = \frac{4000 \times 100}{8000 \times 12.5} \]

### Step 5: Simplify the equation
Calculating the denominator:
\[ 8000 \times 12.5 = 100000 \]
Now substituting this back:
\[ T = \frac{400000}{100000} \]

### Step 6: Calculate the time period
Now, simplifying:
\[ T = 4 \]
Thus, the time period is 4 years.

### Final Answer
The time period is **4 years**.

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