Discussion Forum

Rs. 6,000 becomes Rs. 7,200 in 4 years at a certain rate of simple interest. If the rate becomes 1.5 times of itself, the amount of the same principal in 5 years will be

Answer:

Explanation:

$SI$ $=(7200-6000)$ $=1200$

$SI$ $=\frac{PNR}{100}$

$1200$ $=\frac{(6000\times 4\times R)}{100}$

$\Rightarrow R$ $=5\%$

New rate $=5\times 1.5$ $=7.5\%$

$SI$ $=\frac{(6000\times 7.5\times 5)}{100}$ $=2250$

Amount $=6000+2250$ = Rs. 8250