Question

how much is the simple interest on a sum of money Rs 5000 at the rate of 10% p. a in 2 years. In how many years Rs8000 produces the same interest at the rate of 8% p. a​

Answer 1

a) Rs1000

b) 1.56 years

Explanation:

The simple interest on a principal P at r% in t years is given as I=Prt

We substitute P=5000, r=0.1 and t=2 years to get.

`I = 5000 * 0.1 * 2`

`I = 1000`

The interest is RS 1000

At 8% rate and principal RS 8000, we want to find how many years it will take to produce an interest of Rs1000

`1000 = 8000 * 0.08 * t`

`1000 = 640t`

`t = 1.56`