The simple interest on a certain sum is one-eighth of the sum and the number of years is equal to half of the rate percentage per annum. Find the simple interest on Rs. 25000 at the same rate of simple interest for 6 years.
Answer & explanation
Correct answer: option 2
Time = \(\frac{R}{2}\)
SI = \(\frac{P\;R\;T}{100}\)
ATQ,
\(\frac{P}{8}\) = \(\frac{P × R}{100}\) × \(\frac{R}{2}\)
R2 = 25,
R = 5%
Total rate for 6 years = 30%
SI = 25000 × \(\frac{30}{100}\) = 7500