# After adding a simple interest of \$ 270 an investment

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

Using the formula to calculate time period, we get,
\$270 = \$1125*0.06*Time
=> Time = 4 years

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