The simple interest on a sum of₹4,200 at the end of 3 years is₹756. What will be the simple interest (in₹) on₹5,400 at the same rate and for the same time period?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 972.
Rate from first case
SI = (P × R × T) / 100
756 = (4200 × R × 3) / 100
=> R = (756 × 100) / (4200 × 3) = 6%
same rate and time for new principal
SI = (5400 × 6 × 3) / 100 = ₹972