In how many years will ₹2,500 be invested at the rate of 12% per annum simple interest, which amounts to ₹4,900?

The correct answer is 8 (or 8 years).

Step-by-Step Explanation:

1. Identify the given values:

Principal ($P$) = ₹2,500

Rate of simple interest ($R$) = 12% per annum

Total Amount ($A$) = ₹4,900

2. Calculate Simple Interest ($SI$):

Simple Interest is calculated as the difference between the total amount and the principal amount invested.

$SI=A-P$

$SI=4900-2500=2400$

The Simple Interest earned is ₹2,400.

3. Use the Simple Interest formula:

The standard formula for Simple Interest is:

$SI=\frac{P\times R\times T}{100}$

Where $T$ represents time in years.

4. Substitute the values and solve for $T$:

$2400=\frac{2500\times 12\times T}{100}$

Simplify by canceling zeros in the fraction:

$2400=25\times 12\times T$

$2400=300\times T$

Divide both sides by 300:

$T=\frac{2400}{300}$

$T=8$

It will take 8 years for ₹2,500 to amount to ₹4,900 at a 12% per annum simple interest rate.