Multiple choice

On what date will Rs.1,950 lent on $5^{th}$ January, 1991 amount to Rs.2,125.50 at 5 per cent per annum simple interest ?

  1. $23^{rd}$ Oct. 1992
  2. $20^{th}$ Oct. 1992
  3. $27^{th}$ Oct. 1992
  4. $26^{th}$ Oct. 1992
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest = 2125.50 - 1950 = 175.50. Using SI = (P*R*T)/100, 175.50 = (1950 * 5 * T) / 100, so T = 175.50 / 97.5 = 1.8 years. 1.8 years is 1 year and 0.8 * 365 days = 1 year and 292 days. From Jan 5, 1991, adding 1 year is Jan 5, 1992. Adding 292 days leads to October 23, 1992.

AI explanation

The simple interest is 2125.50 minus 1950, which equals 175.5. Using the formula T = (SI * 100) / (P * R), the time is (175.5 * 100) / (1950 * 5), which equals 1.8 years, or 1 year and 292 days. Counting 292 days from January 5, 1991 (leaving 360 days in 1991 and requiring an extra 292 in 1992) lands on October 23, 1992.

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