- If Rs 450 amount to Rs 504 in 3 years at simple interest, what will Rs 615 amount to in \(2\frac{1}{2} \) years, the rate being same in both cases?
Simple Interest: Simple interest is the interest calculated on the principal amount only for a certain period of time. It is calculated using the formula:
Simple Interest (SI) = (Principal Amount * Rate of Interest * Time Period) / 100
Given:
Principal Amount (P) = Rs 450
Rate of Interest (R) = ?
Time Period (T) = 3 years
Simple Interest (SI) = Rs 504
SI = (P * R * T) / 100
⇒ 504 = (450 * R * 3) / 100
⇒ R = 8% per annum
Now, we have to calculate the amount of Rs 615 after 3 years at the same rate of 8% per annum:
Principal Amount (P) = Rs 615
Rate of Interest (R) = 8% per annum
Time Period (T) = 3 years
Simple Interest (SI) = ?
SI = (P * R * T) / 100
⇒ SI = (615 * 8 * 3) / 100
⇒ SI = Rs 93.20
Therefore, the total amount = Principal Amount + Simple Interest = 615 + 93.20 = Rs 708.20
Hence, the answer is Option C - Rs 676.50
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