Multiple choice

The simple interest accrued on a certain principal amount is Rs. 800 in four years at the rate of 6% p.a. What would be the simple interest accrued on thrice that principal at the rate of 10% p.a. in 2 years?

  1. Rs. 2,000

  2. Rs. 3,025

  3. Rs. 2,250

  4. Rs. 2,150

  5. None of these
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A Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Given SI=800, T=4, R=6, the principal is (800 * 100) / (4 * 6) = 3333.33. For the new scenario, the principal is 3 * 3333.33 = 10000, R=10, T=2, so SI = (10000 * 10 * 2) / 100 = 2000.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, we have 800 = (P * 6 * 4) / 100, which gives P = 800 / 0.24 = 10000/3. For thrice the principal, the new principal is 10000, and the interest for 2 years at 10 percent is (10000 * 10 * 2) / 100 = 2000. The accrued simple interest would be Rs. 2,000.

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