Question

what sum of money lent out at 4.5% for 3years will produce same interest as a sum of 4500 lent out at 3% for 2years 6 months​

Answer 1

S.I. on sum of 4500 at 3% for 2 years 6months =

Principle (P) = 4500

Rate (R) = 3%

Time (T) = 2 years 6 months

= 2 years 6/12 years

= 2½ years

= 5/2 years

Simple interest (S.I.) = (P×R×T)/100

= (4500×3×5)/(2×100)

= 337.5

Sum at 4.5% for 3 years at same interest =

S.I. = (P×R×T)/100

337.5 = (P×4.5×3)/100

337.5 = (13.5P)/100

337.5×100 = 13.5P

33750 = 13.5P

P = 33750/13.5

P = 2500

Hence, sum of money lent out at 4.5% for 3 years will produce 2500 at same interest.