Question

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

Answer 1

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.