Question

What sum of money lent out at 5% for 3 years will produce the same interest as Rs. 900 lent out at 4% for 5 years?

Answer 1

In second case, Principal (P) = Rs. 900

Rate (R) = 4%, Time (T) = 5 years

∴ S.I. = `("P" xx "R" xx "T")/100`

`= (900 xx 4 xx 5)/100` = Rs. 180

In first case, S.I. = Rs. 180

Rate = 5 %, Time = 3 years

∴ Sum = `("S.I." xx 100)/("R" xx "T")`

`= (180 xx 100)/(5 xx 3)` = Rs. 1200