Multiple choice

What sum of money lent at 6.5 % per annum will produce the same interest in 4 years as Rs.7,500 produce in 6 years at 5% per annum ?

  1. Rs. 5,396.66

  2. Rs. 6396.45

  3. Rs. 8,653.85

  4. Rs. 10,639.69
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Interest 1 = P * 6.5 * 4 / 100. Interest 2 = 7500 * 5 * 6 / 100 = 2250. P * 26 / 100 = 2250. P = 225000 / 26 = 8653.846.

AI explanation

First, find the interest on Rs. 7500 at 5 percent for 6 years, which is calculated as (7500 times 5 times 6) divided by 100, equaling Rs. 2250. To find the required principal, set the simple interest of the new sum over 4 years at 6.5 percent equal to Rs. 2250. Using the formula, the principal equals (2250 times 100) divided by (6.5 times 4), which calculates to Rs. 8653.85. The required sum is Rs. 8653.85.

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