- 4 years
- 5 years
- 6 years
- 7 years

Option 2 : 5 years

Let's discuss the concepts related to Interest and Simple Interest. Explore more from Quantitative Aptitude here. Learn now!

Given:

Rate = 20%

Amount = Rs. 3600 and T = 3 years

Concept:

Simple interest is the interest calculated on the principal portion of the loan or the original contribution to the saving account.

Formula Used:

Simple Interest = (P × R × T)/100

Amount = Principal + Interest

Calculation:

Let the principal be 'P'

⇒ Simple interest = 3600 - P

⇒ 3600 - P = (P × 20 × 3)/100

⇒ 3600 - P = 3P/5

⇒ 18000 - 5P = 3P

⇒ 8P = 18000

⇒ P = 18000 ÷ 8 = 2250

Now, When P = Rs. 2250, amount = Rs. 4500 and rate = 20%

Simple interest = 4500 - 2250 = Rs. 2250

Let time be T

⇒ 2250 = (2250 × 20 × T)/100

⇒ T = 5 years

∴ The time is 5 years in which principle become Rs. 4500 at 5%.

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