A man lends a sum of money at 8% simple interest. After 3 years, the total interest received is ₹2,400. What is the amount of money he would receive at the end of 5 years?
Show answer & explanation
Correct answer: C
Explanation
Given:
Rate = 8% per annum
Simple interest for 3 years = ₹2400
Formula:
SI = (P × R × T) / 100
2400 = (P × 8 × 3) / 100
2400 = 24P / 100
2400 = 0.24P
P = 10000
Interest for 5 years = (10000 × 8 × 5) / 100 = 4000
Total amount = 10000 + 4000 = ₹14000