Question

If a sum amounts to ₹ 600 in 2 years at 10% per annum, then how much will it amount to in 5 years?

• A. ₹ 750
• B. ₹ 700
• C. ₹ 800
• D. ₹ 850

Answer 1

The correct option is A ₹ 750

Amount (A) = ₹ 600
Rate of interest (R) = 10%
Time period (T) = 2 years

Let the principal be P.

$\text{We know that, S.I}=\frac{P\times R\times T}{100}\text{and S.I = Amount - Principal}$

$\Rightarrow (600-P)=\frac{P\times 10\times 2}{100}$

$\Rightarrow (600-P)=\frac{P}{5}$
$\Rightarrow (600-P)\times 5=P$
$\Rightarrow 6P=3,000$
$\Rightarrow P=₹500$

$\therefore$ Simple interest after 5 years,

$S.I=\frac{500\times 10\times 5}{100}$

$\Rightarrow S.I=₹250$

$\therefore \text{Amount after 5 years}=₹500+₹250=₹750$