The amount of ₹P was put at simple interest at a certain rate for 4 years. If it had been put at a 6% higher rate for the same period, it would have fetched ₹600 more interest. What is the value of 2.5 P?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹6,250.
SI = (P × R × T)/100 = (P × R × 4)/100 = PR/25
New rate = (R + 6)%
New SI = (P × (R + 6) × 4)/100 = (PR + 6P)/25
So, [(PR + 6P)/25] - [PR/25] = 600
6P/25 = 600
6P = 15000
P = 15000/6 = 2500
2.5P = 2.5 × 2500 = 6250
Hence, the value of 2.5P is ₹6250.