Q) After adding a simple interest of $ 270 an investment becomes $1395. If the principal was invested at 6% p.a. simple interest, for how long was the principal invested.
A) 3 Years
B) 4 Years
C) 5 Years
D) 6 Years
E) 7 Years
Solution: As a Simple Interest problem, this question would make use of the formula,
SI = Principal * Rate * Time
Amount = SI + Principal
Plugging in values, we get,
$1395 = $ 270 + Principal
Principal = $1395  $270 => $1125...
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