Question

In 4 years, ₹6,000 amount to ₹8,000. In what time will ₹525 amount to ₹700 at the same rate?

Answer 1

In first case, principal (P) = ₹ 6000

Amount (A) = ₹ 8000

∴ S.I. = A - P = ₹ 8000 - ₹ 6000 = ₹ 2000

Time (T) = 4 years

∴ R = `("S.I." xx 100)/("P" xx "T") = (2000 xx 100)/(6000 xx 4)`

`= 25/3 % = 8 1/3 %` p.a.

In second case, Principal (P) = ₹ 525

Amount (A) = ₹ 700

∴ S.I. = A - P = ₹ 700 - ₹ 525 = ₹ 175

Rate (R) = `25/3 %` of p.a.

∴ Time = `("S.I." xx 100)/("P" xx "R")` 

`= ("Rs." 175 xx 100 xx 3)/(525 xx 25)` = 4 years