Multiple choice

Mr. Phanse invests an amount of Rs. 24200 at the rate of 4% p.a. for 6 years to obtain a simple interest. Later, he invests the principal amount as well as the amount obtained as simple interest for another 4 years at the same rate of interest. What amount of simple interest will he obtain at the end of the last 4 years?

  1. Rs. 4800

  2. Rs. 4800.32

  3. Rs. 4801.28

  4. Rs. 4700

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest for 6 years = 24200 * 0.04 * 6 = 5808. New principal = 24200 + 5808 = 30008. Interest for next 4 years = 30008 * 0.04 * 4 = 4801.28.

AI explanation

First, calculate the simple interest earned over the initial 6 years using the formula: (24200 * 4 * 6) / 100 = Rs. 5808. Next, find the interest generated when both the principal (Rs. 24200) and this interest (Rs. 5808) are invested for another 4 years at 4%, which is calculated on the combined total of Rs. 30008. Using the formula again, (30008 * 4 * 4) / 100 = Rs. 4801.28. The simple interest obtained at the end of the last 4 years is Rs. 4801.28.

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