Question

Hardik invests an amount of Rs. 48400 at the rate of 4% per annum for 6 yr to obtain a simple interest, later he invests the amount obtained as simple interest and the principal amount for another 6 yr at the same rate of interest. What amount of simple interest will be obtained at the end of the last 6 yr?
1. 14440.50
2. 14403.84
3. 14404.56
4. 14444

Answer 1

Correct Answer - Option 2 : 14403.84

Given:

Principal = 48400

Rate (R) = 4% pa

Time (T) = 6 yr

Calculations:

In case 1 :

SI = (P × R × T) / 100

SI = (48400 × 4 × 6) / 100

SI = 11616

Amount = Principal + SI

⇒ Amount = 48400 + 11616

⇒ Amount = 60016

In case 2:

SI = (60016 × 4 × 6) /100

⇒ SI = 14403.84

∴ The Simple interest after the last 6 years is Rs. 14403.84.