A sum of Rs. 24500 amounts to Rs. 27,475 in 3\(\frac{2}{5}\) years at a certain rate percent per annum simple interest. What will be the simple interest on the same sum for 3\(\frac{1}{2}\) years at double the earlier rate?
Answer & explanation
Correct answer: option 3
Principal = 24,500
Amount - 27,475
Interest = 27,475 - 24,500 = 2975
2975 = \(\frac{24500}{100}\) × \(\frac{17}{5}\) × R
⇒ R = \(\frac{25}{7}\)
Double rate interest = \(\frac{25}{7}\) × 2 = \(\frac{50}{7}\)
SI = \(\frac{24500}{100}\) × \(\frac{50}{7}\) × \(\frac{7}{2}\)
= 6125