Question
A sum invested at 5% simple interest per annum grows to
₹806 in 6 years. If the amount remains the same, how much will it grow at a 12% simple interest rate in 5 years?Solution
Find principal 806 = P × (1 + 5×6/100) = P × 1.3 P = 806 ÷ 1.3 = 620 New amount at 12% for 5 years A = 620 + (620×12×5)/100 = 620 + 372 = ₹992
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