At simple interest a sum of ₹6,400 becomes ₹8,320 in 3 years. What will ₹7,200 become in 5 years at the same rate?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹10,800.
Given that
Principal (P) = Rs. 6400
Amount (A) = Rs. 8320
Time (T) = 3 years
Formula used
Simple interest = PRT/100
S.I. = A - P
where, P = Principal, R = Rate of interest, T = time
Calculation
⇒ S.I. = 8320 - 6400 = Rs. 1920
⇒ 1920 = 6400 × R × 3/100
⇒ R = 1920/(64 × 3) = 10 %
Now, New principal = Rs. 7200, and Time = 5 years , Same rate R = 10%
New S.I = (7200 × 10 × 5)/100 = Rs. 3600
Amount = 7200 + 3600 = Rs. 10800