Question

A sum of Rs. 6,600 amounts to Rs. 8,756 in \(4\frac{2}{3}\) years at x% p.a. simple interest. What will the same amounts to if invested at (x + 3)% p.a. for \(2\frac{1}{2}\)years, interest compounded yearly (nearest to Rs. 1)?
1. Rs. 8,066
2. Rs. 8,385
3. Rs. 8,458
4. Rs. 8,175

Answer 1

Correct Answer - Option 2 : Rs. 8,385

Given:

A sum of 6,600 amounts to 8,756 in 14/3 years at x% p.a. simple interest.

Calculation:

⇒ 8756 - 6600 = (6600 × 14/3 × x)/100

⇒ x = 2156/308 = 7

⇒ New rate is (x + 3) = 7 + 3 = 10%

⇒ New amounts for two year = 6600 × (110/100)² = 7986

⇒ Interest for next (1/2) year = 7986 × (10/100) = (798.6) × (1/2) = 399.3

⇒ Total amount = 7986 + 399.3 = 8385.3

∴ The requires result will be 8385.3.