Question

If $₹4000$ becomes $₹4600$ in a year's time at simple interest, what will $₹6000$ become at the end of 2 years at the same rate of interest?

• A. 6400
• B. 6600
• C. 7000
• D. 7800

Answer 1

Answer: (D)

Principal $=₹4000$
Therefore, $4600=4000+$ Interest
Interest $=₹600$
$I=\frac{PNR}{100}\Rightarrow 600=\frac{4000\times R\times 1}{100}\Rightarrow R=15\%$.
$\therefore$ The simple interest on $₹6000$ at the rate of $15\%$ for a period of 2 years is $(6000\times 15$ $\times 2)/100=₹18000$. Therefore, $₹6000$ at the end of 2 years, amounts to $₹6000+1800$ $=₹7800$.