Question

At what rate per cent of simple interest will the interest on Rs.3,750 be one-fifth of itself in 4 years? To what will it amount in 15 years?

• A. 6 % and Rs.6,562.50
• B. 8 % and Rs.6,562.50
• C. 5 % and Rs.6,562.50
• D. 4 % and Rs.6,562.50

Answer 1

The correct option is C 5 % and Rs.6,562.50

Simple Interest $I=\frac{PNR}{100}$
Given,
$P=Rs3,750$
$I=\frac{1}{5}\times P=Rs750$
$N=4years$
$R=?$
So, $=>I=\frac{PNR}{100}$
$=>750=\frac{3,750\times 4\times R}{100}$
$=>R=5$ %
And for $15$ years, interest
$I=\frac{PNR}{100}$
$=>I=\frac{3,750\times 15\times 5}{100}=Rs.2,812.5$
And Amount $=I+P=Rs.3,750+Rs.2,812.5=Rs.6,562.5$