Question
A sum increases by 75% in 10 years at a certain rate of
simple interest per annum. By what percentage will the same sum increase in 6 years at the same rate of simple interest per annum?Solution
Let the rate of interest and principal amount be R% and Rs. P respectively, According to the question, P+ (P x R x 10) ÷ 100 = 1.75 x P R = 7.5% Hence, the sum becomes after 6 years = P + (P x 7.5 x 6)/100 = Rs. 1.45P Thus, the sum becomes increases by = (1.45P-P) /P x 100% = 45% By 45% the same sum will increase in 6 years at the same rate of simple interest per annum.
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