Question

An amount of Rs. P was put at simple interest at a certain rate for 4 years. If it had been put at a 6% higher rate for the same period, it would have fetched Rs. 600 more interest. What is the value of 2.5 P?

• A. Rs. 3,750
• B. Rs. 6,250
• C. Rs. 4,850
• D. Rs. 2,500

Answer 1

Answer:

B. Rs. 6,250

Solution: Given: Principal = P Time = 4 years Formula used: S.I = (P × R × T)/100 Where, P = principal ; R = rate ; T = time; Calculation: According to the question: ⇒ {P × (R + 6) × 4}/100 - (P × R × 4)/100 = 600 ⇒ {P × R × 4 + P × 6 × 4 - P × R × 4}/100 = 600 ⇒ P × 6 × 4 = 600 × 100 ⇒ P = Rs.2500 Now, ⇒ 2.5 × P = 2.5 × 2500 ⇒ Rs.6250 ∴ The correct answer is Rs.6250.