Question

If Rs.750 at a fixed rate of simple interest amounts to 1000 in 5 years, then how much will it become in 10 years at the same rate of simple interest?

• A. Rs.2050
• B. Rs.2000
• C. Rs.1250
• D. Rs.1520

Answer 1

Answer:

C. Rs.1250

Solution: Given: Principal = 750, Time = 5 year, Amount = 1000 Formula Used: Simple interest = (Principal × Time × Rate)/100 Calculation: We know that, Simple interest = Amount - Principal ⇒ 1000 - 750 ⇒ Simple interest = 250 According to question, ⇒ 250 = ( 750 × 5 × rate)/100 ⇒ {(250 × 100)/(750× 5)} Rate = (20/3)% After that, It become in 10 years at the same rate of simple interest Principal = 750, rate = (20/3)%, time = 10 yrs Simple interest = {(750 × 10 × 20)/ (3 × 100)} ⇒ Simple interest = 500 Then total amount = 500 + 750 = 1250 ∴ 10 year later total amount is 1250 Shortcut Trick Simple interest = amount - principal ⇒ 1000 - 750 = 250 5 years of simple interest is 250 We know that simple interest pays equal interest in every year ⇒ 5yrs = 250 ⇒ 1 year = 50 ⇒ 10 years = 500 Then total amount = 500 + 750 ∴ Total amount = 1250