A sum invested at 5% simple interest p.a. grows to Rs.504 in 4yrs. The same amount at 10% simple interest p.a. in 21/2 yrs will grow to:a.Rs. 525b.Rs. 550c.Rs. 420d.Rs. 450
Question
A sum invested at 5% simple interest p.a. grows to Rs.504 in 4yrs. The same amount at 10% simple interest p.a. in 21/2 yrs will grow to:a.Rs. 525b.Rs. 550c.Rs. 420d.Rs. 450
Solution 1
To solve this problem, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
Let's first calculate the principal amount using the given information. We know that the sum invested at 5% simple interest per annum grows to Rs. 504 in 4 years. Using the formula, we can write:
504 = (Principal * 5 * 4) / 100
Simplifying this equation, we get:
504 = (20 * Principal) / 100
Multiplying both sides by 100 and dividing by 20, we find:
Principal = (504 * 100) / 20 Principal = 2520 / 20 Principal = Rs. 126
Now, we need to find the amount that will grow to in 2.5 years at 10% simple interest per annum. Again, using the formula, we have:
Amount = Principal + Simple Interest Amount = Principal + (Principal * Rate * Time) / 100
Substituting the values, we get:
Amount = 126 + (126 * 10 * 2.5) / 100 Amount = 126 + (126 * 25) / 100 Amount = 126 + 3150 / 100 Amount = 126 + 31.5 Amount = Rs. 157.5
Therefore, the amount will grow to Rs. 157.5 in 2.5 years at 10% simple interest per annum. However, none of the given options match this amount.
Solution 2
To solve this problem, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 100
Let's first find the principal amount using the given information. We know that the sum invested at 5% simple interest per annum grows to Rs. 504 in 4 years. Using the formula, we can calculate the principal amount:
504 = (Principal * 5 * 4) / 100
Simplifying this equation, we get:
504 = (20 * Principal) / 100
Multiplying both sides by 100 and dividing by 20, we find:
Principal = (504 * 100) / 20 Principal = 2520 / 20 Principal = Rs. 126
Now, we need to find the amount that the same principal will grow to at 10% simple interest per annum in 2.5 years. Again, using the formula for simple interest, we can calculate the amount:
Amount = Principal + Simple Interest Amount = Principal + (Principal * Rate * Time) / 100
Substituting the values, we get:
Amount = 126 + (126 * 10 * 2.5) / 100 Amount = 126 + (126 * 25) / 100 Amount = 126 + 3150 / 100 Amount = 126 + 31.5 Amount = Rs. 157.5
Therefore, the same amount at 10% simple interest per annum in 2.5 years will grow to Rs. 157.5. However, none of the given options match this amount.
Similar Questions
1. 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the sum of the interest on both the sum after 4 years is 480, the latter sum of money is ?450 750 600 550
A sum fetched a total simple interest of Rs. 4016.25 at the rate of 9 p.c.p.a. in 5 years. What is the sum?Rs. 4462.50Rs. 8032.50Rs. 8900Rs. 8925
A certain sum of money amounts to Rs 6300 in 5 years at 515515%simple interest per annum. Find the sum.Rs 4500Rs5000Rs 5500Rs 4000
A sum invested on simple interest grows to Rs 22500/- and Rs 25500/- is seven and nine years respectively. What is the rate percentage of the interest ?
In what time will Rs.1,250, at 8% per annum, produce the same interest as Rs.2,000 does in 5 years at 0.5% simple interest?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.