Multiple choice

A principal of Rs.10,500 at certain rate of simple interest, becomes Rs. 13,825 in 3 4 5 years, then find the simple interest on the same principal in 5 years at twice the rate of interest?

  1. Rs 8,670

  2. Rs 8,470

  3. Rs 8,560

  4. Rs 8,750
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Principal = Rs. 10,500. Amount after 3 4/5 years = Rs. 13,825. Interest earned = 13,825 - 10,500 = Rs. 3,325. Time = 19/5 years. Simple Interest = P × R × T/100 = 10500 × R × (19/5)/100 = 3325. This gives R = 3325 × 5 × 100/(10500 × 19) = 25/3%. New rate = 2R = 50/3%. New interest for 5 years = 10500 × (50/3) × 5/100 = Rs. 8,750.

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