Question
Rs. 3,000 becomes Rs. 4,200 in 10 years at simple interest
of r% p.a. If Rs. 6,000 is invested at 0.5r% p.a. for 6 years, what will be the interest amount?Solution
ATQ,
Interest earned in 10 years = 4200 – 3000 = Rs. 1,200
Simple interest = Sum invested × rate of interest × time period in years ÷ 100
So, 1200 = 3000 × r × 10 ÷ 100
Or, r = 1200 ÷ (10 × 30)
So, r = 4
So, new rate of interest = 0.5 × 4 = 2% p.a.
So, required interest = 6000 × 2 × 6 ÷ 100 = Rs. 720
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