On simple interest a sum of ₹ 640 becomes ₹ 832 in 2 years. What will ₹ 860 become in 4 years at the same rate of simple interest?
Answer & explanation
Correct answer: option 2
ATQ, 640 becomes 832 in 2 years
Interest (I) = Amount(A) - Principal (P)
= 832 - 640 = 192
Interest for 1 years = \(\frac{192}{2}\) = Rs 96
Rate% = \(\frac{I}{P}\) × 100
= \(\frac{96}{640}\) × 100 = 15%
Here,
Principal (P) = 860, Rate (R) = 15%, Time (T) = 4 years
Total S.I. for 4 years = 15 × 4 = 60%
Amount after 4 years = P × 160% = 860 × 160% = Rs.1376