Question 85

If Rs.750 amounts to Rs.1000 in 5 years, then what will it amount to in 10 years at Simple Interest?

Solution

Let say, rate of interest= r %.

So,

$$750\left(1+\frac{5\times r}{100}\right)=1000.$$

or,$$1+\frac{5\times r}{100}=\frac{1000}{750}=1.3333.$$

or,$$\frac{5\times r}{100}=\frac{1}{3}.$$

or,$$r=\frac{20}{3}.$$

So,Amount will become in 10 years=$$750\left(1+\frac{10\times\ \frac{20}{3}}{100}\right)=750\times\left(\frac{5}{3}\right)=1250.$$

B is correct choice.

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