Question

A sum is invested at the rate of 5% per annum on simple interest, amounts Rs. 132 in 2 years. The same sum is invested at twice the previous rate at simple interest per annum for 3.5 years amounts- 

1. 152
2. 150
3. 162
4. 115
5. 250

Answer 1

Correct Answer - Option 3 : 162

Formula Used:

SI = Amount – Principal

SI = P × T × R /100

Calculations:

Let the principal be Rs. x.

Amount = Rs. 132

SI = 132 – x      ----(1)

Also SI = x × 2 × 5 /100      ----(2)

Equating equation (1) and (2)

⇒ x × 2 × 5 /100 = 132 – x

⇒ 11x = 1320

⇒ x = 120

If the rate becomes two times i.e. 10% per annum,

⇒ SI = 120 × 3.5 × 10 /100

⇒ SI = 42

⇒ Amount = 120 + 42 = Rs. 162

Hence it amounts Rs. 162 at the rate 10% for 3.5 years.