Question 136

If Rs. 5,000 becomes Rs. 5,700 in a year’s time, what will Rs. 7,000 become at the end of 5 years at the same rate of simple interest ?

Solution

let the rate of interest be R

here Rs 5000 becomes Rs 5700 in 1 year and hence interest for 1 year = Rs 700

SI = $$\frac{P \times R \times T}{100}$$

700 = $$\frac{5000 \times R \times 1}{100}$$

R = 14%

now new principal amount = Rs 7000

T = 5 years

R = 14%

hence SI in 5 years at Rs 7000 = $$\frac{7000 \times 14 \times 5}{100}$$ = Rs 4900

and hence total amount = 7000 + 4900 = Rs 11900

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