Question

What sum of money lent at 6.5% per annum will produce the same interest in 4 years as Rs.7500 produce in 6 years at 5% per annum?

Answer 1

In first case :

P = Rs.7500

R = 5%

T = 6 years

Interest =`("P"xx"R"xx"T")/100`

= Rs.`(7500xx5xx6)/100`

= Rs.75 × 5 × 6

= Rs.2250

In the second case:

According to the statement, interest = Rs.2250

R = 6.5% P.A.

T = 4 years

P =`(100xx"I")/("R"xx"T")`

= Rs. `(100xx2250)/(6.5xx4)`

= Rs. `225000/26` = Rs. `112500/13`

= Rs.8653.85

Required principal = Rs.8653.85