Multiple choice

Simple interest on a sum of money in 10 years is 1500 at a constant rate of interest. Find simple interest for 10 years at the same rate of interest when for the first 5 years the principal remains the same but for the next 5 years the principal is tripled?

  1. $2000$
  2. $2400$
  3. $2700$
  4. $3000$
  5. $Cannot be determined$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let principal be P and rate be R%. Simple interest for 10 years: P×R×10/100 = 1500, so PR = 15000. For the new scenario: first 5 years interest = P×R×5/100 = 750, next 5 years principal triples to 3P, so interest = 3P×R×5/100 = 2250. Total interest = 750 + 2250 = 3000. This uses the constant rate R throughout.

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