Question

A sum of Rs. 4000 is lent on simple interest at the rate of 10% per annum. Simple interest for 5 years is how much more than the simple interest for 3 years?

• A. Rs. 400
• B. Rs. 600
• C. Rs. 800
• D. Rs. 1200

Answer 1

Answer:

C. Rs. 800

Solution: Given: A sum of Rs.4000 is lent on simple interest at the rate of 10% per annum P= 4000 R = 10% Formula used: S.I = (P × N × R)/100 Calculation: S.I for 5 years = (4000 × 5 × 10)/100 = 2000 S.I for 3 years = (4000 × 3 × 10)/100 = 1200 ⇒ Difference between S.I for 5 years and S.I for 3 years = 2000 - 1200 = 800 ∴ Simple interest for 5 years is 800 more than the simple interest for 3 years.