Question

In what time will ₹ 4,000 lent at 3% per annum on simple interest earn as much interest as ₹ 5,000 will earn in 5 years at 4% per annum on simple interest?

Answer 1

Answer:

Step-by-step explanation:

Interest=PNR/100 where P=principle Rs 5000; N=period 5years and R=rate of interest 4%

Interest=5000*5*4/100=Rs 1000

N=period=interest*100/P*R where interest=Rs 1000 to be earned; P=principle Rs 4000 and R=rate of interest 3%

N= period=1000*100/4000*3=8.33 or 8 years 4 months