Question

Choose the correct answers from the alternatives given.
If Rs. 5,000 becomes Rs. 5.700 in a years time, what will Rs.7.000 become at the end of 5 years at the same rate of interest?

• A. Rs.10,500
• B. Rs. 11,900
• C. Rs.12.700
• D. Rs. 7,700

Answer 1

The correct option is B Rs. 11,900

Interest = Amount - Principal
= 5700 - 5000 700
We know that,
Interest = $\frac{p\times R\times T}{100}$
700 = $\frac{5000\times R\times 1}{100}$
R=14%
A= P + $\frac{p\times R\times T}{100}$
$=7000(1+\frac{14\times 5}{100})=7000\times (1+\frac{7}{10})=\frac{7000\times 17}{10}$
= Rs. 11900