Question
A sum of money amounts to ₹17,600 in 2 years at 5%
simple interest. What will be the amount after 5 years?Solution
Let the principal be P. Using the formula for simple interest: A = P + (P × R × T) / 100 17,600 = P + (P × 5 × 2) / 100 17,600 = P + (10P) / 100 17,600 = (110P) / 100 P = 17,600 × 100 / 110 = ₹16,000 Now, calculate the amount for 5 years: A = 16000 + (16000 × 5 × 5) / 100 A = 16000+ 4000 A = ₹20,000 Correct answer: a) ₹20,000.
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