The simple interest in 16 years is Rs. 2400. What will be the simple interest, if the initial principal amount is increased by 8%, 10% and 15% respectively after every 4 year?
Answer & explanation
Correct answer: option 1
Simple interest for one year = \(\frac{2400}{16}\) = 150
ATQ,
First Four years next four years next four years next four years
150 × 4 150 × 4 × 8% 150 × 4 × 10% 150 × 4 × 15%
600 648 660 690
Total simple interest = 600 + 648 + 660 + 690 = Rs.2598