A sum at a certain rate of simple interest becomes ₹14880 after 3 years and ₹16800 after 5 years. Find the simple interest on the same sum at 10%per annum for 4 years (in ₹).
Answer & explanation
Correct answer: option 3
Principal becomes Rs 14880 after 3 years and Rs 16800 in 5 years
Interest for 2 years = 16800-14880
= 1920
Interest for 1 year = \(\frac{1920}{2}\)
= Rs 960
Interest for 3 years = 960 × 3
= Rs 2880
Principal = Amount - Interest
= 14880- 2880
= 12000 Rs
Now
Principal(P)=Rs 12000
Time(T)= 4 years
Rate = 10 %
Interest(I)=\(\frac{P×R×T}{100}\)
Interest(I)=\(\frac{12000×10×4}{100}\)
Interest(I)=Rs 4800