The simple interest on a sum of money will be Rs. 500 after 10 years. If principal is double after 5 years., the total interest at the end of the 10 th year will be
A
Rs. 350
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B
Rs. 650
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C
Rs. 500
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D
Rs. 750
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Solution
The correct option is C Rs. 750 In first condition,
Given, Simple interest, I= Rs. 500 Time T=10 years We know, I=PTR100 100I=PTR ....(P= Principal, R= Rate) PR=100IT PR=100I10=10×500= Rs. 5000 .......(i) To make principal P double in 5 years, it must have to have P as an interest. So, Principal =P, Interest =P Time =5 years I=PTR100 100×P=P×5×R R=20% per year Now, using equation (1) , we get PR=5000 P=500020= Rs. 250 Principal Rs. 250 has become double in 5, then it must be Rs. 1000 in 10 years. So, total interest =1000−250= Rs. 750