Question

What will be the amount on Rs 500 at 8 p. c.p.a
aftes years?​

Answer 1

Answer:

Given, Simple interest, I= Rs. 500

Time T=10 years

We know, I=100PTR

100I=PTR ....(P= Principal, R= Rate)

PR=T100I

PR=10100I=10×500= Rs. 5000 .......(i)

To make principal P double in 5 years, it must have to have P as an interest.

So, Principal =P,

Interest =P

Time =5 years

I=100PTR

100×P=P×5×R

R=20% per year

Now, using equation (1) , we get

PR=5000

P=205000= Rs. 250

Principal Rs. 250 has become double in 5, then it must be Rs. 1000 in 10 years.

So, total =750