Mathematics for FinancePYQ Dec 21Question 1228 of 512
All Questions

Rahul invested 70,000\displaystyle 70,000 in a bank at the rate of 6.5%\displaystyle 6.5\% p.a. simple interest rate. He received 85,925\displaystyle 85,925 after the end of term. Find out the period for which sum was invested by Rahul.

Options

A2\displaystyle 2 years
B3\displaystyle 3 years
C3.5\displaystyle 3.5 years
D2.5\displaystyle 2.5 years
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option c — 3.5\displaystyle 3.5 years

All Options:

  • A2\displaystyle 2 years
  • B3\displaystyle 3 years
  • C3.5\displaystyle 3.5 years
  • D2.5\displaystyle 2.5 years

Detailed Solution & Explanation

**Derivation of Investment Period** Given: - Principal (P\displaystyle P) = Rs. 70,000\displaystyle \text{Rs. }70,000 - Simple Interest Rate (R\displaystyle R) = 6.5%\displaystyle 6.5\% per annum - Future Value (A\displaystyle A) = Rs. 85,925\displaystyle \text{Rs. }85,925 **Step 1: Calculate the Simple Interest earned (SI\displaystyle SI)** SI=A−P=85925−70000=Rs. 15,925SI = A - P = 85925 - 70000 = \text{Rs. }15,925 **Step 2: Solve for Time (T\displaystyle T)** SI=P×R×T100SI = \frac{P \times R \times T}{100} 15925=70000×6.5×T10015925 = \frac{70000 \times 6.5 \times T}{100} 15925=700×6.5×T15925 = 700 \times 6.5 \times T 15925=4550T15925 = 4550 T T=159254550=3.5 yearsT = \frac{15925}{4550} = 3.5 \text{ years} Hence, **Option C** is the correct answer.

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 512 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free