The simple interest accrued on a certain principal in 5 years at the rate of 12 p.c.p.a. is ₹1536. What amount of simple interest would one get if one invests ₹1000 more than the previous principal for 2 years and at the same rate p.c.p.a.? (Bank Recruitment, 2010)
(a)` 614.40
(b)` 845.40
(c)` 1536
(d)` 2136
(e)None of these
Answer
Answer (as printed): E
Explanation
Sum $=₹\left(\frac{100 \times 1536}{12 \times 5}\right)=₹2560$. Now, P = ₹(2560+1000) = ₹3560, T = 2 yrs, R = 12%. ∴ S.I. $=₹\left(\frac{3560 \times 12 \times 2}{100}\right)=₹854.40$.
Explanation as extracted from the printed page; notation may be imperfect.