Question

RS 3560 becomes RS 4272 in 8 years at S.I. What will be the simple interest on Rs 6480 in 14 years at the same rate of interest?

Answer 1

Answer:

$RS\ 8,748$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

step 1

Find the rate of interest

in this problem we have

$t=8\ years\\ P=RS\ 3,560\\ A=RS\ 4,272\\r=?$

substitute in the formula above

$4,272=3,560(1+8r)$

solve for r

$8r=(4,272/3,560)-1$

$r=[(4,272/3,560)-1]/8$

$r=0.025$

convert to percentage

$r=0.025*100=2.5\%$

step 2

What will be the simple interest on Rs 6480 in 14 years at the same rate of interest?

we have

$t=14\ years\\ P=RS\ 6,480\\ A=?\\r=0.025$

substitute in the formula above

$A=6,480(1+0.025*14)$

$A=6,480(1+0.35)$

$A=RS\ 8,748$