A sum of Rs. 3125 amounts to Rs. 3515.20 in 3 years at x % p.a. interest is compounded yearly. What will be the simple interest (in Rs.) on the same sum and for the same time at (x + 2) % p.a.?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 562.50.
A = P(1 + r/100)n
⇒ 3515.20 = 3125(1 + r/100)3
⇒ 3515.20/3125 = (1 + r/100)3
⇒ 17576/15625 = (1 + r/100)3
⇒ 26/25 = (1 + r/100)
⇒ r = 4%
SI for (x + 2) = (4 + 2) = 6%
SI = (3125 × 6 × 3)/100
SI = 562.5