Divya bought Rs. 30,000 from a bank to buy a car at 20% simple interest. If she paid Rs. 18,000 as interest while clearing the loan, find the time for which the loan was given.
3 years
Under simple interest, the interest is charged only on the original principal, so it grows by the same amount every year.
Simple interest: SI = P × R × T / 100, so T = SI × 100 / (P × R)
T = 18000 × 100 / (30000 × 20)
= 1800000 / 600000
= 3
Check: 30000 × 20 × 3 / 100 = 18000, which matches the interest paid.
Hence, 3 years.
Similar Questions
A sum of Rs. 1,550 was lent partly at 5% and the remaining amount at 8% simple interest. The total interest received after 3 years was Rs. 300. The ratio of money lent at 5% to that lent at 8% is ______.
Important Questions from Simple Interest
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
P borrowed an amount from Q at a simple interest of 10% p.a. At the end of the year, P paid back Rs 99000 which was 90% of what she owed. How much money did P borrow?
A sum of money at simple interest amounts to Rs. 1,285 in 4 years and to Rs. 1,330 in 5 years. The sum is ____________.
