If the simple interest on a certain sum of money for 4 years at 5% per annum is ₹500, what would be the simple interest on the same sum for 6 years at 7% per annum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹1,050.
SI = (P × R × T)/100
⇒ 500 = (P × 5 × 4)/100
⇒ 500 = 20P/100
⇒ P = 2500
New SI = (2500 × 7 × 6)/100 = 1050