Consider the following statements regarding simple interest:
1. The simple interest on ₹8,000 for 3 years at 5% per annum is ₹1,200.
2. If a sum of money doubles in 10 years at simple interest, then it will become 1.5 times in 6 years.
3. The simple interest rate required for an amount to become 2.5 times in 5 years is 30%.
Of these statements, which are correct?
Show answer & explanation
Correct answer: C
Explanation
1. SI = 8000 × 5 × 3 / 100 = 1200 (Correct)
2. Doubles in 10 years ⇒ SI = P ⇒ R = 10%
SI in 6 years = 60% ⇒ Amount = 1.6 times (Incorrect)
3. 2.5 times ⇒ SI = 1.5P
1.5P = P × R × 5 / 100 ⇒ R = 30% (Correct)
Only 1 and 3 are correct