Multiple choice

A sum of Rs. 8,400 amounts to Rs. 11,046 at 8.75% p.a. simple interest in a certain time. What is the simple interest on the sum of Rs. 9,600 at the same rate for the same time?

  1. Rs. 2,990

  2. Rs. 3,012

  3. Rs. 2,686

  4. Rs. 3,024
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest on 8400 is 11046 - 8400 = 2646. Rate and time are same for both. Simple interest is proportional to the principal. (SI1 / P1) = (SI2 / P2). 2646 / 8400 = SI2 / 9600. SI2 = (2646 * 9600) / 8400 = 3024.

AI explanation

First, find the interest earned on the initial sum by subtracting the principal from the amount, which is Rs. 11046 minus Rs. 8400 to equal Rs. 2646. Using the proportion method, since the simple interest is directly proportional to the principal when rate and time are constant, the new interest bears the same ratio to the new principal. The required interest is 2646 multiplied by 9600 and then divided by 8400, which equals Rs. 3024.

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