Question

Mr. Peter invests an amount of Rs. $12200$ at the rate of $2$ p.c.p.a. for $4$ years to obtain a simple interest . Later he invests the principal amount as well as the amount obtained as simple interest for another $3$ years at the same rate of interest. What amount of simple interest will he obtain at the end of the last $3$ years?

• A. $790.56$
• B. $1285$
• C. $1585$
• D. $1265$

Answer 1

Answer: (A)

$790.56$

Amount after $4$ years$=P+SI$

$A=12200+\frac{12200\times 4\times 2}{100}=12200+976=Rs.13176$

Now for next three year simple interest is

$SI=\frac{13176\times 3\times 2}{100}=790.56$

Hence, the amount of simple interest will he obtain at the end of the last $3$ years is $Rs.790.56$