Multiple choice

Find the principal if the interest on that principal, at the end of 5 years at 6% p.a., is the same as the interest on Rs. 1120 at the end of 18 months at 10% p.a.

  1. Rs. 500

  2. Rs. 560

  3. Rs. 1100

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest 1 = P * 5 * 6 / 100 = 0.3P. Interest 2 = 1120 * 1.5 * 10 / 100 = 168. 0.3P = 168 => P = 168 / 0.3 = 560.

AI explanation

Calculate the interest on Rs. 1120 using the simple interest formula SI = P * R * T / 100, where T is 1.5 years, giving SI = 1120 * 10 * 1.5 / 100 = Rs. 168. Equating this to the interest on the unknown principal for 5 years gives P * 6 * 5 / 100 = 168. Solving for P yields P = 16800 / 30 = Rs. 560.

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