A sum at a certain rate of simple interest becomes ₹ 37,200 after 3 years end ₹ 42,000 after 5 years. Find the simple interest (in ₹) on the same sum at 6% per annum for 8 years.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 14,400.
Formula used:
Simple interest = PRT/100 ---- (1)
P = Principal, R = Rate and T = time period
Calculations:
Using equation (1)
Simple interest for 2 years (5 - 3) = 42000 - 37200 = 4800
For 3 years = (4800/2) × 3 = 7200
P = 37200 - 7200 = 30000
Now, according to the question
Simple interest = (30000 × 6 × 8)/100 = 14400