Question

In what time will Rs. 10000, at 4% per annum produce the same interest as Rs. 12000 in 6 years at 5% simple interest?
1. 9 years
2. 8 years
3. 6 years
4. 10 years

Answer 1

Correct Answer - Option 1 : 9 years

FORMULA USED:

Simple Interest = PRT/100

Where, P = principle, R = Rate of interest, T = time period

CALCULATION:

According to the question

(10000 × 4 × T)/100 = (12000 × 6 × 5)/100

⇒ T = 360000/40000 = 9

∴ The required time = 9 years