Question 72

In what time will 8,000, at 3% simple interest per annum produce the same income as 6,000 does in 5 years at 4% simple interest ?

Solution

Principal sum = Rs. 6000 and rate of interest = 4% and time period = 5 years

Simple interest = $$\frac{P\times R\times T}{100}$$

= $$\frac{6000\times4\times5}{100}=1200$$

Now, let time taken for sum = Rs. 8000 at 3% to generate simple interest = Rs. 1200 is $$t$$ years

=> $$\frac{8000\times3\times t}{100}=1200$$

=> $$240t=1200$$

=> $$t=\frac{1200}{240}=5$$ years

=> Ans - (B)

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