Question

If rs 500 amounts to Rs 725 at 9% simple interest in sometime ,what will Rs 600amount to at 11% in same time?

Answer 1

`Rs\ 930`

Explanation:

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

step 1

Find the number of time periods t

in this problem we have

`t=?\ years\\ P=Rs\ 500\\ A=Rs\ 725\\r=0.09`

substitute in the formula above and solve for t

`725=500(1+0.09t)`

`t=[(725/500)-1]/0.09`

`t=5\ years`

step 2

what will Rs 600 amount to at 11% in same time?

we have

`t=5\ years\\ P=Rs\ 600\\ A=?\\r=0.11`

substitute in the formula

`A=600(1+0.11*5)`

`A=600(1.55)`

`A=Rs\ 930`