Final answer:
The period, using the simple interest formula, is calculated by dividing the interest by the product of the principal and the rate of interest. After computing with the given values, the period comes out to be 3 years.
Step-by-step explanation:
The student has asked a question pertaining to a simple interest problem, where they are seeking to find the period or time for which the principal amount is invested. To calculate the period, we'll use the formula for calculating simple interest (I = PRT, where I = Interest, P = Principal, R = Rate, T = Time), and solve for T (Time).
From the given data, we have:
- Principal (P) = 2550 rupees
- Annual Rate of Interest (R) = 17.5%
- Total Amount (A) = 3888.75 rupees
- Since the Total Amount is the sum of the Principal and the Interest earned, we can calculate the Interest (I) as follows:
Interest (I) = Total Amount (A) - Principal (P) = 3888.75 - 2550 = 1338.75 rupees
Then we can rearrange the simple interest formula to solve for T (Time).
I = P * R * T => T = I / (P * R)
It's important to convert the Rate of Interest to decimal form such that R = 17.5% = 0.175
Therefore, T = 1338.75 / (2550 * 0.175) = 1338.75 / 446.25 = 3 years
The period for which the money was invested is 3 years.