A sum of Rs.10500 amounts to Rs.13825 in 3\(\frac{4}{5}\) years at a certain rate of simple interest. What will be the simple interest on the same sum for 5 years at double the earlier rate?
Answer & explanation
Correct answer: option 1
Simple Interest = 13825 - 10500 = 3325
rate = \(\frac{3325\;×\;5}{10500\;×\;19}\) x 100 = \(\frac{25}{3}\)%
double rate = \(\frac{50}{3}\) %
S.I. = \(\frac{10500\;×\;50\;×\;5}{3\;×\;100}\)
= 8750