Question

What sum of money lent at 25/2% per annum will produce the same interest in 4years as RS 8560 produce in 5years at 12% per annum.​

Answer 1

The required sum is Rs. 10272

Step-by-step explanation:

Step 1.

Let the sum is Rs. P

Given, rate of interest = 12.5% p.a.

and time = 4 years

Then interest = Rs. (P * 4 * 12.5) / 100

= Rs. P/2

Step 2.

Given, sum = Rs. 8560,

time = 5 years and

rate of interest = 12% p.a.

Then interest = Rs. (8560 * 5 * 12) / 100

= Rs. 5136

Step 3.

By the given condition, interest on Rs. P in 4 years at 12.5% p.a. = interest on Rs. 8560 in 5 years at 12% p.a.

Then P/2 = 5136

or, P = 2 * 5136

or, P = 10272

Therefore the required sum is Rs. 10272