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Rs4,300 becomes Rs4,644 in 2 years at simple interest. Find the principle amount that will become Rs10,104 in 5 years at the
same rate of interest.
Rs7,200
Rs8,420
Rs9,260
Rs5,710
- Calculate the rate of simple interest for the first condition.
- Initial amount (P1) = Rs4,300
- Final amount (A1) = Rs4,644
- Time = 2 years
- Interest = A1 - P1 = Rs344
- Use simple interest formula: Interest = P1 * Rate * Time/100
- Solve for Rate: 344 = 4300 * Rate * 2/100 results in Rate = 4%
- Use the same rate for the second condition to find the principal.
- Final amount (A2) = Rs10,104
- Time = 5 years
- Use the formula: A2 = Principal (P2) * (1 + Rate * Time/100)
- Substitute the Rate (4%) and solve for P2:
- 10,104 = P2 * (1 + 4 * 5/100)
- P2 = 10,104 / 1.2 = Rs8,420
- Check against options.
- Option 2: Rs8,420 is a match.
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