Rs. 4300 becomes Rs. 4644 in 2 years at simple interest. Find the sum that will become Rs. 10,104 in 5 years at the same rate of simple interest.
Answer & explanation
Correct answer: option 1
Principal = Rs.4300
Amount = Rs.4644
Simple Interest of two years = Amount - Principal = Rs.344
Simple Int. for one year = Rs.172
Rate of Int. per annum = \(\frac{172}{4300}\) × 100% = 4%
Rate of Int. in 5 years = 4 × 5 = 20%
ATQ,
Principal × 120% = 10104
Principal = 10104 ×\(\frac{5}{6}\)
= Rs.8420/-