Question

A sum of money invested at 9% Simple Interest amounts to Rs.37760 in 2 years. What will it amount to in 5 years at 10% simple interest.

Answer 1

Answer:

The investment will amount to Rs48,000 in 5 years at 10% simple interest.

Step-by-step explanation:

In 2 years the amount invested has increased to Rs37,760 at 9% simple interest annually. So this amount would be 118%.

So now we can calculate the amount which was initially invested:

(37,760/1.18)×1=Rs32,000

Now what will it amount to in 5 years at 10% interest:

first we'll calculate the 10% interest on the initial investment:

32,000×10%=Rs3,200

Now we'll add the 5 years interest amount to the initial investment:

3,200×5=Rs16,000

32,000+16,000=Rs48,000