Question 70

The simple interest on a certain principal is Rs. 1,280 in 2 years at the rate of 8 p.c.p.a. What would be the simple interest accrued on thrice of that principal at the rate of 10.75 p.c.p.a. at the end of two years ?

Solution

Let the principal = Rs. $$x$$

S.I. = $$\frac{Principal \times Rate \times Time}{100}$$

=> $$1280 = \frac{x \times 8 \times 2}{100}$$

=> $$x = 80 \times 100 = 8,000$$

Simple interest accrued on thrice of that principal

= $$\frac{24,000 \times 10.75 \times 2}{100}$$

= Rs. $$5,160$$

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