Question

What sum of money lent out at 5% for 3 years will produce the same interest as₹900 lent out at 4% for 5 years?

Answer 1

pehle Sab like karenge

ok guys

Let’s first calculate the interest on ₹900 at 4% for 5 years,

here principal(p) = ₹900, roi(r) = 4% and period (n) = 5

calculating the Simple Interest…

SI = p*r*n/100

SI = 900*4*5/100

SI = ₹180

since the interest is same for both, we will take ₹180 as interest and calculate the sum/principal invested at the rate of 5% for the period of 3 years.

now, let the principal be ‘x’….

SI = ₹180, roi(r) = 5% and period(n) = 3 years

calculating the principal by the same Simple Interest formula we used earlier..

SI = p*n*r/100

180 = x*5*3/100

x = 180*100/5*3

x = 18000/15

x = ₹1200

so ₹1200 invested at rate of 5% for the period of 3 years will generate ₹180 as interest as before.