How much time (in years) will it take for an amount of ₹4,50,000 to yield ₹45,000 as simple interest at a 5% per annum rate of interest?

The correct answer is Option 2 (2 years).

To find the time required for the principal amount to earn the specified simple interest, we use the simple interest formula:

$SI=\frac{P\×R\×T}{100}$

From the question, the given values are:

Principal (P) = ₹4,50,000

Simple Interest (SI) = ₹45,000

Rate of interest per annum (R) = 5%

Time (T) = ? years

Substitute the given values into the simple interest formula:

$45000=\frac{450000\×5\×T}{100}$

Simplify the right side of the equation:

$45000=4500\×5\×T$

$45000=22500\×100...$

$45000=22500\×T$

Solving for T:

$T=\frac{45000}{22500}$

$T=2$

Thus, it will take 2 years for an amount of ₹4,50,000 to yield ₹45,000 as simple interest at a rate of 5% per annum.