Sam borrowed some money from his friend at simple interest of 6% per annum. He returned his friend Rs. 15600. After how much time did Sam return the money if he borrowed Rs. 12000?
A)8 years
B)2.5 years
C)5 years
D)3.5 years

Question

Quizplus · Accepted Answer

Simple interest is calculated using the formula $I = P \times R \times T / 100$, where $I$ is the interest, $P$ is the principal amount, $R$ is the rate of interest per annum, and $T$ is the time in years. Here, $P = 12000$, $R = 6\%$, and the total amount returned is $15600$, which means the interest $I = 15600 - 12000 = 3600$. Plugging these values into the formula and solving for $T$ gives $T = 5$ years.

Sam Borrowed Some Money from His Friend at Simple Interest