Multiple choice

RS 6000 becomes Rs 7200 in 4 years at a certain rate of simple interest. If the rate becomes 1.5 times itself, the amount of the same principle in 5 years will be

  1. Rs 8000

  2. Rs 8250

  3. Rs 9250

  4. Rs 9000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest = 7200 - 6000 = Rs 1200 over 4 years. Annual interest = 1200/4 = Rs 300. Rate = 300/6000 × 100 = 5% per annum. New rate = 1.5 × 5 = 7.5%. Interest in 5 years at 7.5% = 6000 × 7.5/100 × 5 = Rs 2250. Amount = 6000 + 2250 = Rs 8250.

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