Question

The Simple interest on a sum of money is going to be Rs. 300 after 5 years. For the next 5 years, the principal is doubled. Then the total interest at the end of the 10^th year is?
1. 600
2. 700
3. 800
4. 900

Answer 1

Correct Answer - Option 4 : 900

Given:

Simple Interest = Rs. 300

Time = 5 years

Concept:

When the principal is doubled then the SI will also be doubled.

Calculations:

According to the question,

SI for 1st 5 years = Rs. 300

SI for the next 5 years = Rs. 300 × 2 = Rs. 600

(When the principal is doubled then the SI will also be doubled.)

Total SI for 10 yrs = Interest for first 5 years + Interest for last 5 years.

⇒ Total SI for 10 yrs =  Rs. (300 + 600)

⇒ Total SI for 10 yrs = Rs. 900.

∴ The total interest at the end of the 10th year is Rs. 900.