If ₹1,875 becomes ₹2,625 in 4 years, what will ₹24,000 become at the end of 9 years at the same rate of interest, under simple interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e.₹45,600.
Simple Interest = (P × R × T)/100
Where, P = Principal; R = Rate of interest per annum; T = Total time
Interest = 2625 - 1875 = ₹750
Let the rate of interest per annum = R
So, 750 = (1875 × 4 × R)/100
⇒ 7500R = 75000
⇒ R = 10
New principal amount = ₹24,000
Time = 9 years
Rate of interest per annum = 10%
Simple interest = (24000 × 10 × 9)/100 = ₹21,600
Final amount = 24000 + 21600 = ₹45,600
Therefore, ₹24,000 will become ₹45,600 at the end of 9 years.