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What sum will produce the same interest ...

What sum will produce the same interest in 9 years at the rate 8% simple interest as Rs 800 produce in 3 years at 9/2% per amum?
A. Rs. 100
B. Rs. 125
C. Rs 150
D. Rs. 110

A

C

B

D

C

B

D

A

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem, we will use the formula for Simple Interest (SI): \[ SI = \frac{P \times R \times T}{100} \] Where: - \(SI\) = Simple Interest - \(P\) = Principal amount - \(R\) = Rate of interest per annum - \(T\) = Time in years ### Step 1: Calculate the interest produced by Rs 800 in 3 years at 9/2% per annum. Given: - Principal \(P = 800\) - Rate \(R = \frac{9}{2} = 4.5\%\) - Time \(T = 3\) years Using the formula: \[ SI = \frac{800 \times 4.5 \times 3}{100} \] Calculating the interest: \[ SI = \frac{800 \times 4.5 \times 3}{100} = \frac{10800}{100} = 108 \] ### Step 2: Set up the equation for the unknown principal \(x\) that will produce the same interest in 9 years at 8%. Now we need to find the principal \(x\) that will produce the same interest of Rs 108 in 9 years at 8% per annum. Given: - Rate \(R = 8\%\) - Time \(T = 9\) years Using the formula again: \[ SI = \frac{x \times 8 \times 9}{100} \] Setting this equal to the interest calculated in Step 1: \[ \frac{x \times 8 \times 9}{100} = 108 \] ### Step 3: Solve for \(x\). First, simplify the left side: \[ \frac{72x}{100} = 108 \] Now, multiply both sides by 100 to eliminate the fraction: \[ 72x = 10800 \] Next, divide both sides by 72: \[ x = \frac{10800}{72} \] Calculating \(x\): \[ x = 150 \] ### Conclusion The sum that will produce the same interest in 9 years at the rate of 8% simple interest is **Rs 150**.
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