The compound interest on a certain sum for 3 years at 15% p.a. interest compounded yearly, is Rs. 4167. What is the simple interest on the same sum in 24/5 years at the same rate?
Show answer & explanation
Correct answer: A
Explanation
Correct Answer is option 1 i.e. Rs. 5760
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Concept |
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SI = (P × r × t)/100 For CI A = P[1 + r/100]t where, P = Principal amount, r = rate, t = time |
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Application |
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Converting 15% for 3 years into cumulative interest: 15 + 15 + 152/100 = 32.25 Now, 32.25 + 15 + (32.25 × 15)/100 = 47.25 + 4.8375 = 52.0875% Now, P × 0.520875 = 4167 ⇒ P = 8000 Hence, SI = (8000 × 24 × 15)/(5 × 100) = Rs. 5760 |