If Rs. 750 amounts to Rs. 1000 in 5 years, What will it become in 10 years at S.I?
- P = 750; SI = 250; N = 5
Let the rate of interest be R
R = 100 x I = 100 x 250 = 20 % PN 750 x 5 3
Amount in 10 years = 750 + 750 x 20 x 10 3 100
Given, Principal amount (P) = Rs. 750, Amount (A) = Rs. 1000 and Time (t) = 5 years.
We need to find the amount after 10 years at Simple Interest (S.I).
Let us first calculate the rate of interest (R) per annum using the formula for Simple Interest:
Simple Interest (S.I) = (P x R x t)/100
where P is the principal, R is the rate of interest per annum and t is the time period in years.
Substituting the given values, we get:
250 = (750 x R x 5)/100
R = 10/3 = 3.33% (approx.)
Now, we can use the formula for Simple Interest to find the amount after 10 years:
A = P x (1 + R x t)
where P is the principal, R is the rate of interest per annum and t is the time period in years.
Substituting the values, we get:
A = 750 x (1 + 3.33/100 x 10)
A = Rs. 1250
Therefore, the correct answer is Option A: 1250.
Key takeaways:
Simple Interest (S.I) is calculated using the formula: S.I = (P x R x t)/100, where P is the principal, R is the rate of interest per annum and t is the time period in years.
The formula for calculating the amount (A) after t years at Simple Interest (S.I) is: A = P x (1 + R x t), where P is the principal, R is the rate of interest per annum and t is the time period in years.
In this problem, we first calculated the rate of interest (R) using the given values of P, A and t, and then used this value to calculate the amount (A) after 10 years.
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