Question

What sum of money lent at 6.5 % per annum will produce the same interest in 4 years as Rs.7,500 produce in 6 years at 5% per annum ?

• A. $Rs.5,396.66$
• B. $Rs.6396.45$
  
• C. $Rs.8,653.85$
• D. $Rs.10,639.69$

Answer 1

The correct option is C $Rs.8,653.85$

Simple Interest $I=\frac{PNR}{100}$

So, $\frac{P\times 4\times 6.5}{100}=\frac{7500\times 6\times 5}{100}$
$=>P=Rs8653.85$