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### Question

An investor puts an amount of Rs. 3200 in a simple interest scheme. If the rate of interest is 4%, how long does he have to wait for getting an amount of Rs. 3840?

**A**

5 years.

**B**

6 years.

**C**

4 years.

**D**

7 years.

**Soln.**

**Ans: a**

The interest is I = 3840 - 3200 = 640. So T = $(I × 100)/(R × P)$. Solving, we get T = $(640 × 100)/(4 × 3200)$ = 5 years.