Multiple choice

Simple interest on a certain sum is one-fourth of the sum and the interest rate percentage per annum is 4 times the number of years. If the rate of interest increases by 2%, then what will be the simple interest (in ₹) on ₹5,000 for 3 years?

  1. 2000

  2. 1800

  3. 300

  4. 1500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the sum be P and time be t years. SI = P/4 = (P × r × t)/100 gives rt = 25. Given r = 4t, we get 4t² = 25, so t = 2.5 years and r = 10%. New rate = 12%, so SI on ₹5000 for 3 years = (5000 × 12 × 3)/100 = ₹1800.

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