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Find the simple interest at the rate of 5% p.a. for 3 years on that principal which, in 2 years, 8 months at the rate of 5% p.a., gives Rs. 1200 as simple interest.

a. Rs. 500
b. Rs. 600
c. Rs. 700
d. Rs. 800

User Firstrock
by
8.7k points

1 Answer

1 vote

Final answer:

To find the simple interest at the rate of 5% p.a. for 3 years, let's assume the principal amount (P) from the given information. By using the formula for simple interest, we can solve for P and calculate the simple interest on the given principal.

Step-by-step explanation:

To find the simple interest at the rate of 5% p.a. for 3 years on the principal, we need to know the principal amount. Let's assume the principal amount is P.

According to the given information, the principal amount of P, in 2 years 8 months at the rate of 5% p.a., gives Rs. 1200 as simple interest. This implies:

  1. Simple interest = Principal x Rate x Time
  2. 1200 = P x 0.05 x (2 + 8/12) years

Solving for P:

  1. 1200 = P x 0.05 x 2.67
  2. 1200 = P x 0.1335
  3. P = 1200 / 0.1335
  4. P = Rs. 8988.67

Now, using the formula for simple interest:

  1. Simple interest = Principal x Rate x Time
  2. Simple interest = Rs. 8988.67 x 0.05 x 3 years
  3. Simple interest = Rs. 1348.30

Therefore, the simple interest at the rate of 5% p.a. for 3 years on the given principal is Rs. 1348.30.

User Javierfdezg
by
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