A certain sum amounts to ₹12096 at 8% p.a. in $5\frac{1}{2}$ years at simple interest. What will be the simple interest on the same sum at 10% p.a. in 8 years?
Answer & explanation
Correct answer: option 4
Total simple interest of \(\frac{11 }{2 }\) years = 8% × \(\frac{11 }{2 }\) = 44%
Let initial sum = 100%
ATQ,
144% = 12096
1% = \(\frac{12096 }{144 }\) = 84
Initial Sum = 100% = 100 × 84 = Rs. 8400
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{8400 × 10 × 8}{100}\)
= Rs. 6720