The interest accrued on a sum of ₹16,000 lent at a simple interest rate of 14% p.a. for the time in those many years, which gives a simple interest of three-fifths of a certain sum at 10% p.a., is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. ₹13,440.
We know that,
S.I. = (P × R × T)/100.....(1)
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
We know that the simple interest at 10% per annum is equal to three-fifths of this sum after T years.
Interest = (S × 10 × T)/100
⇒ 3S/5 = (S × T)/10
⇒ 3/5 = T/10
⇒ T = 6 years
On putting T in eq 1
⇒ S.I. = (16000 × 14 × 6)/100
⇒ S.I. = 160 × 14 × 6
⇒ S.I. = 13440
Thus, the interest accrued on the sum of ₹16,000 at a simple interest rate of 14% per annum for 6 years is ₹13,440.