A sum of 1500 is invested at 5% p.a. simple interest. If the interest is added to the principal after every 10 years, the amount will become ₹ 3000 after :
Answer & explanation
Correct answer: option 2
sum of 1500 is invested at 5% p.a. simple interest
Simple interest after (T1=10 years) = 1500*5*10/100 = 750
Amount = 2250
Since, the interest is added to the principal after every 10 years
New Principal = 2250
If Amount = 3000
Simple interest = 750
rate = 5% p.a.
T2=?
750 = 2250*5*T2/100
100 = 15*T2
T2 = 100/15 = 20/3
Total time for principal 1500 to become 3000 = 10 + 20/3 = 50/3 = 16 2/3 years
The correct answer is Option (2) → $16\frac{2}{3}$ years