Multiple choice

The simple interest on a certain sum of money at the rate of 5% p.a for 8 years is Rs. 840 At what rate of interest the same amount of interest can be received same sum after 5 years?

  1. 6%

  2. 8%

  3. 9%

  4. 10%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest I = P * R * T / 100. For the first case, 840 = P * 5 * 8 / 100, so 840 = P * 0.4, which means P = 2100. For the second case, 840 = 2100 * R * 5 / 100, so 840 = 105 * R, which means R = 8%.

AI explanation

Using the simple interest formula, the principal sum is calculated as 100 multiplied by 840 divided by the product of 5 and 8, resulting in Rs. 2100. To find the new rate for the same interest of Rs. 840 over 5 years, divide 100 multiplied by 840 by the product of 2100 and 5. The calculation gives a new rate of 8 percent.

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