A sum of Rs. 8400 amounts to Rs. 11046 at 8.75% p.a. simple interest in a certain time. What will be the simple interest (in Rs. ) on a sum of Rs. 10800 at the same rate for the same time?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3402.
Interest earned = 11046 - 8400 = 2646
Time = (2646 × 100)/(8400 × 8.75)
Time = 3.6 years.
Interest earned on 10800 in 3.6 years at the rate of 8.75%.
(10800 × 3.6 × 8.75)/100 = 3402.