Question

Rs 890 becomes Rs 1068 in 4 years at simple interest. What amount will become Rs 1620 in 7 years at the same rate of interest ?​

Answer 1

Answer:

The rate of interest in 1st part of the question is 5% and Principle in the 2nd part of the question is Rs. 1200

Answer 2

Given: Rs 890 becomes Rs 1068 in 4 years at simple interest.

To find: The amount that will become Rs 1620 in 7 years at the same rate of interest.

Solution:

The amount obtained from the simple interest of a particular sum of money is can be calculated as follows.

$Amount = P + \frac{P*R*T}{100}$

Here, P is the principal amount of money, R is the rate of interest and T is the time period in years. According to the question, a sum of Rs. 890 amounts to rupees Rs. 1068 in 4 years. This can be written in the form of an equation as follows.

$1068 = 890 + \frac{890*R*4}{100}$

$R = 5$

Hence, the rate of interest is 5%. Now, the principal for the amount Rs. 1620 is calculated.

$1620 = P + \frac{P*5*7}{100}$

        $= \frac{135}{100}P$

$P = \frac{1620 * 100}{135}$

   $= 1200$

Therefore, the amount that will become Rs. 1620 in 7 years at the same rate of interest is Rs. 1200.