A sum of ₹800 invested on simple interest becomes ₹1200 in 8 years. What will be simple interest for 6 years on the sum at the same rate of interest?
Answer & explanation
Correct answer: option 4
Simple interest for 8 years = 1200 - 800 = 400
Simple interest for 1 years = \(\frac{400 }{8 }\) = 50
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
50 = \(\frac{800 × Rate × 1 }{100}\)
Rate = 6.25%
Now , Simple interest for 6 years
= \(\frac{800 × 6.25 × 6}{100}\)
= Rs. 300