If a sum of ₹3,260 on simple interest amounts to ₹5,420 in 6 years, then what will this sum amount to in 4 years at the same rate of interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹4,700.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = rate, and T = Time
Amount(A) = Principal + Simple Interest
⇒ S.I. = 5420 - 3260 = 2160
For 6 years:
⇒ 2160 = (3260 × R × 6)/100
⇒ R = (2160 × 100)/(3260 × 6)
⇒ R = 216000/19560
⇒ R = 216000/19560
⇒ R = 11.04%
So, S.I. for 4 years
⇒ S.I. = (3260 × 11.04 × 4)/100
⇒ S.I. = 1439.61
So,
⇒ A = 1439.61 + 3260 = 4699.61 or 4700 approximately
Thus, The sum will amount to ₹4,700 in 4 years