A certain sum amounts to ₹13200 after 4 years and to ₹16400 after 8 years at the same rate percent p.a. Add to simple interest. The simple interest (in ₹) on the same sum at 10% p.a. for 3 years will be:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 3200
A certain sum amounts to Rs. 13200 after 4 years and to Rs. 16400 after 8 years
In simple interest, the interest is always constant if the rate and sum are the same
So, Interest for 4 years = 16400 - 13200
⇒ Rs 3200
So, for the 1st 4 years, the interest will be Rs. 3200
So, Sum = 13200 - 3200
⇒ Rs 10000
Now,
Sum = (10000 × 10 × 16)/(100 × 5)
= 100 × 2 × 16
= Rs 3200