Multiple choice

The compound interest accrued on an amount of Rs 21500 at a certain rate of interest at the end of three years is Rs 7116.5. What would be the simple interest accrued on the same amount at the same rate in the same period?

  1. Rs 6350

  2. Rs 6450

  3. Rs 6250

  4. Rs 6150

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For 3 years, CI = P((1+r/100)^3 - 1). Given CI = 7116.5, P = 21500. Solving for r gives 10%. SI = (P * r * t) / 100 = (21500 * 10 * 3) / 100 = 6450.

AI explanation

The compound interest formula for three years gives the relation 21500(R)^3 + 64500(R)^2 + 64500R = 7116.5 when dividing the standard equation by 100, where R is the rate divided by 100. Solving this cubic equation for the interest accrued gives an annual interest rate of 10%. The simple interest for three years is then calculated as (21500 multiplied by 10 multiplied by 3) divided by 100, which equals Rs 6450.

Keep practicing — related questions