A sum of money becomes 240% of itself in 8 years at simple interest. Find the simple interest earned when Rs. 3000 is invested at the same rate for 3 years.
Show answer & explanation
Correct answer: D
Explanation
Given:
Amount in 8 years = 240% of the principal
Formula:
Simple interest = PRT / 100
Amount in 8 years = 240% P
Hence, total interest = 240% P − 100% P = 140% P
Interest for 8 years = 140%
Interest for 1 year = 140/8% = 17.5%
P = 3000, R = 17.5%, T = 3
Simple interest = (3000 × 17.5 × 3) / 100 = ₹1575