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Question

If Rs. 750 amounts to Rs. 1000 in 5 years, What will it become in 10 years at S.I?

Options:
A .  1250
B .  2050
C .  1520
D .  2000
E .  None of these
Answer: Option A

 -    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.

If you think the solution is wrong then please provide your own solution below in the comments section .


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