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Find the period when simple interest on ...

Find the period when simple interest on Rs.4000 at 6% per annum will be Rs.400.

A

20 months

B

22 months

C

14 months

D

18 months

Text Solution

AI Generated Solution

The correct Answer is:
To find the period when simple interest on Rs.4000 at 6% per annum will be Rs.400, we can use the formula for Simple Interest (SI): ### Step-by-step Solution: 1. **Identify the given values:** - Principal (P) = Rs.4000 - Rate (R) = 6% per annum - Simple Interest (SI) = Rs.400 2. **Use the formula for Simple Interest:** \[ SI = \frac{P \times R \times T}{100} \] where: - SI = Simple Interest - P = Principal - R = Rate of interest per annum - T = Time in years 3. **Substitute the known values into the formula:** \[ 400 = \frac{4000 \times 6 \times T}{100} \] 4. **Simplify the equation:** - Multiply both sides by 100 to eliminate the fraction: \[ 400 \times 100 = 4000 \times 6 \times T \] \[ 40000 = 24000T \] 5. **Solve for T:** - Divide both sides by 24000: \[ T = \frac{40000}{24000} \] \[ T = \frac{10}{6} \text{ years} \] 6. **Convert years to months:** - Since 1 year = 12 months, we multiply by 12: \[ T = \frac{10}{6} \times 12 = 20 \text{ months} \] ### Final Answer: The period when simple interest on Rs.4000 at 6% per annum will be Rs.400 is **20 months**.
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