A sum of Rs. 7,500 amounts to Rs. 8,748 after 2 years at a certain compound interest rate per annum. What will be the simple interest on the same sum for 5 years at double the earlier interest rate?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer is option 2 i.e. Rs. 6000
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Understanding |
Application |
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Given: P = 7500 A = 8748 t = 2 years SI = (P × r × t)/100 For CI A = P[1 + r/100]t |
8748 = 7500 (1 + r/100)2 ⇒ 2916/2500 = (1 + r/100)2 ⇒ 1 + r/100 = 54/50 ⇒ r/100 = 4/50 ⇒ r = 8 Now, SI on Rs. 7500 in 5 years at 16% per annum = [7500 × 16 × 5]/100 = Rs. 6000 |