Multiple choice

In 4 years, an amount of Rs. 6,000 becomes Rs. 8,000 at a certain rate of simple interest. In what time at the same simple interest rate, will an amount of Rs. 525 become Rs. 700?

  1. 2 years

  2. 3 years

  3. 4 years

  4. 5 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The interest earned on 6000 in 4 years is 2000. Interest rate R = (2000 * 100) / (6000 * 4) = 100/12 = 8.33%. For 525 to become 700, interest needed is 175. Time T = (175 * 100) / (525 * 8.33) = 17500 / 4375 = 4 years.

AI explanation

First, find the interest rate from the first scenario using Rate = (100 * Interest) / (Principal * Time), which gives Rate = (100 * 2000) / (6000 * 4), equaling 8.33%. The interest on Rs. 525 to become Rs. 700 is Rs. 175, so applying the same rate gives Time = (100 * 175) / (525 * 8.33), which equals 4 years.

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