Consider the simple interest of the following
(A) The simple interest on Rs 8,930 at 6% per annum for 5 years
(B) The simple interest on Rs 3,080 at 13.50% per annum for 4 years
(C) The simple interest on Rs 7,200 at 14.00 % per annum for 7 years
(D) The simple interest on Rs. 3,120 at 4.00 % per annum for 5 years
The simple interests of these in increasing order are:
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (D), (B), (A), (C)
Simple interest is \(\mathrm{SI}=\frac{P\times R\times T}{100}\), where \(P\) is the principal, \(R\) the rate per cent per annum and \(T\) the time in years. Each case is worked out and the four values are then placed from smallest to largest.
(D) Rs. 3,120 at 4.00 % for 5 years — \(\displaystyle \frac{3120\times4\times5}{100}=\) Rs 624, the smallest
(B) Rs 3,080 at 13.50% for 4 years — \(\displaystyle \frac{3080\times13.5\times4}{100}=\) Rs 1663.20
(A) Rs 8,930 at 6% for 5 years — \(\displaystyle \frac{8930\times6\times5}{100}=\) Rs 2679
(C) Rs 7,200 at 14.00 % for 7 years — \(\displaystyle \frac{7200\times14\times7}{100}=\) Rs 7056, the largest