Multiple choice

Rs. $\,1500$ is invested at a rate of $10\%$ simple interest and interest is added to the principal after every $5$ years. In how many years will it amount to Rs. $\,2500$?

  1. $\;6\displaystyle\frac{1}{9}$ years
  2. $\;6\displaystyle\frac{1}{4}$ years
  3. $\;7$ years
  4. $6$ years
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For the first 5 years, interest is 1500 * 0.1 * 5 = 750. Total amount after 5 years is 1500 + 750 = 2250. We need 250 more. The new principal is 2250. Interest needed = 250. Time = 250 / (2250 * 0.1) = 250 / 225 = 10/9 years. Total time = 5 + 10/9 = 6 1/9 years.

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