Question

If the Acer on 500 for 2 years at a certain rate is 100 then what the interest of 5 on the same amount of the same rate

Answer 1

Correct Question

If the simple interest on ₹500 for 2 years at a certain rate is 100. Then what is the interest on 5 years at the same principle and rate.

Answer

Given :

Principle (1) : ₹500

Simple interest (1) : ₹100

Time (1) : 2 years

Time (2) : 5 years

To find :

The simple interest of second statement at same principle and rate.

Solution :

First, we should find the rate of interest by the information given in the first statement.

Rate of interest :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow 100 = \dfrac{500 \times R \times 2}{100}$

$\sf \dashrightarrow 100 = \dfrac{1000 \times R}{100}$

$\sf \dashrightarrow 100 = \dfrac{1000R}{100}$

$\sf \dashrightarrow R = \dfrac{100 \times 100}{1000}$

$\sf \dashrightarrow R = \dfrac{1 \times 100}{10}$

$\sf \dashrightarrow R = \dfrac{100}{10}$

$\sf \dashrightarrow R = 10\%$

Now, we can find the simple interest for the information given in the second statement.

Simple interest (2) :

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow \dfrac{500 \times 10 \times 5}{100}$

$\sf \dashrightarrow \dfrac{500 \times 10 \times 1}{20}$

$\sf \dashrightarrow \dfrac{500 \times 1}{2}$

$\sf \dashrightarrow \cancel \dfrac{500}{2} = 250$

Hence, the simple interest at same principle, rate and for 5 years is ₹250.