Question

In what time will Rs. 5000 at 3% produce the same interest when Rs. 2500 does in 3 years at 4% simple interest ?
1. 1 years
2. 3 years
3. 4 years
4. 2 years

Answer 1

Correct Answer - Option 4 : 2 years

Given:

First Principal = Rs. 5000

First rate = 3%

Second principal = Rs. 2500

Time = 3 years

Rate = 4%

Formula Used:

Simple Interest = (P × R × T)/100

P → Principal

R → Rate of interest

T → Time

Calculation:

Simple Interest = (P × R × T)/100

⇒ Simple Interest = (2500 × 3 × 4)/100

⇒ Rs. 300

Simple Interest = (P × R × T)/100

⇒ 300 = (5000 × 3 × T)/100

⇒ 150T = 300

⇒ T = 2 years

∴ The required time is 2 years.