Question

What sum of money lent at 6.5% per annum will produce the same interest in 3 years as Rs. 7500 produce in 6 years at 5% per annum?

Answer 1

In first case:
P= Rs. 7500
R= 5%
T= 6 years
Interest= $\frac{P\times T\times R}{100}$
=$Rs.\frac{7500\times 5\times 6}{100}$
=Rs. $75\times 5\times 6$
=Rs. 2250
In second case:
According to the statement, interest=Rs. 2250
R= 6.5% P.A.
T=4 years
$P=\frac{100\times I}{R\times T}$
=Rs. $\frac{100\times 2250}{6.5\times 4}$
=$Rs.\frac{225000}{26}=Rs.\frac{112500}{13}$
=Rs. 8653.85 Required principal=Rs.8653.85