Question
A sum of Rs. 55,000 becomes Rs. 72,600 after 2 years when
invested at simple interest at r% per annum. What will be the simple interest earned on Rs. 80,000 at (5r/8)% p.a. in 4 years?Solution
ATQ,
Simple interest = (Principal × rate × time) ÷ 100
So, interest earned = Amount - Principal
So, interest earned = 72600 - 55000 = Rs. 17,600
So, 17600 = (55000 × r × 2) ÷ 100
So, r = 16
So, new rate of interest = 16 × (5/8) = 10%
So, required interest = (80000 × 10 × 4) ÷ 100 = Rs.32,000
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