Question

Rs.2400 becomes Rs.2796 in 3 years at a certain rate of simple interest.What sum of money will become Rs.5016 in 4 years at the same rate of interest.?

Answer 1

Rate=2.02%
Interest
=909.4

Answer 2

Answer:

Rs.3800

Explanation:

Here, P = Rs.2400

A = Rs.2976 and

T = 3 years

Therefore, I = A - P

= Rs.2976 - Rs.2400

= Rs.576

Therefore, R = $\frac{100 \times I}{P \times T} \: = \frac{100 \times 576}{2400 \times 3} = 8$

So, the rate of interest is 8% p.a.

Now, A = Rs.5016

T = 4 years and

R = 8% p.a.

We have, $A \: = P(1 + \frac{R \times T}{100} )$

= Rs.5016 = $P(1 + \frac{8 \times 4}{100} )$

= Rs.5016 = $\frac{33}{25} P$

= P = $\frac{Rs.5016 \times 25}{33} = Rs.3800$

Hence, the sum of money required is Rs.3800

Simple Interest:

Simple interest: (I)

It is the interest paid on the original sum of money borrowed or invested.

Amount: (A)

It is the sum of the principal and the interest.

Interest:(I)

It is the additional amount paid by the borrower to the lender for the use of a sum of money.

Principal: (P)

It is the sum of money lent, borrowed or invested.

Time: (T)

It is the duration for which the sum of money is lent or inverted, usually in years.

Rate : (R)

It is the interest paid on Rs.100 per unit of time, usually per annum. (p.a)