Question

If the interest on ₹32,000 is ₹4,800 for 3 years, what is the interest on ₹40,000 for 2 years at same rate of interest.
(4 Marks)

Answer 1

1st case
Given,
Principal = ₹32,000, Rate of interest = R , Time= 3 years,
Interest = ₹4,800
We know that,
$I=\frac{P\times T\times R}{100}$
$4,800=\frac{32,000\times 3\times R}{100}$
$R=\frac{4,800\times 100}{32,000\times 3}$
$=5$
The rate of interest is 5%.
(2 Marks)
2nd case
Principal = ₹ 40,000, Rate of interest = 5% , Time= 2 years,
Interest = ?
$I=\frac{P\times T\times R}{100}$
$=\frac{40,000\times 2\times 5}{100}$
$=₹4,000$
The interest on ₹ 40,000 for 2 years at 5 p.c.p.a is ₹ 4,000.
(2 Marks)