The simple interest accrued on a sum of certain principal is Rs.1,200 in four years at the rate of 8 p.c.p.a. Then what would be the simple interest accrued on thrice of that principal at the rate of 6 p.c.p.a. in 3 years?
Question
The simple interest accrued on a sum of certain principal is Rs.1,200 in four years at the rate of 8 p.c.p.a. Then what would be the simple interest accrued on thrice of that principal at the rate of 6 p.c.p.a. in 3 years?
Solution
To find the simple interest accrued on thrice the principal at the rate of 6% per annum in 3 years, we need to follow these steps:
Step 1: Calculate the principal amount. Given that the simple interest accrued on a certain principal is Rs. 1,200 in four years at the rate of 8% per annum, we can use the formula for simple interest: Simple Interest = (Principal * Rate * Time) / 100
Let's denote the principal amount as P. Using the given information, we can write the equation as: 1,200 = (P * 8 * 4) / 100
Simplifying the equation, we get: 1,200 = (32P) / 100 Multiplying both sides by 100, we have: 120,000 = 32P Dividing both sides by 32, we find: P = 3,750
So, the principal amount is Rs. 3,750.
Step 2: Calculate the simple interest for thrice the principal. To find the simple interest for thrice the principal, we multiply the principal amount by 3. So, the new principal amount is 3 * 3,750 = Rs. 11,250.
Step 3: Calculate the simple interest for 3 years at the rate of 6% per annum. Using the formula for simple interest, we have: Simple Interest = (Principal * Rate * Time) / 100 Substituting the values, we get: Simple Interest = (11,250 * 6 * 3) / 100
Calculating further, we have: Simple Interest = (67,500) / 100 Simple Interest = Rs. 675
Therefore, the simple interest accrued on thrice the principal at the rate of 6% per annum in 3 years would be Rs. 675.
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