mcqs Math Simple Interest In how much time a principal of $3200 will amount to $3328 at a simple interest of 2% per annum? 7198

Question: In how much time a principal of $3200 will amount to $3328 at a simple interest of 2% per annum?

(A)  1.5
(B)  2.5
(C)  2
(D)  3

Correct Answer 2

Solution And Explanation

Solution

Given,

Principal (P) = $3200

Rate of Simple Interest (R) = 2% per annum

Amount (A) = $3328

Thus, time (T) = ?

Method (1) Using Formula

We know that, Amount (A) = Principal (P) + Simple Interest (SI)

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $3328 – $3200 = $128

Thus, Simple Interest = $128

Time (T) = ^{100 × Simple Interest}/_{Principal × Rate of Interest}

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 128}/_{3200 × 2}

= ¹²⁸⁰⁰/₆₄₀₀

= 2 years (using formula)

Thus, Time (T) = 2 years (from time taken before calculation)Answer

Here, we have

Principal (P) = $3200

Rate of Simple Interest (R) = 2% per annum

Simple Interest = $128 (As calculated above by subtracting Principal from the Amount given)

We know that, interest is calculated on the basis of the Principal.

This means Simple Interest for 1 year = Rate of simple interest × Principal

Thus, Simple Interest for 1 year = 2% of Principal

= 2% of $3200

= ²/₁₀₀ × 3200

= ^{2 × 3200}/₁₀₀

= ⁶⁴⁰⁰/₁₀₀ = 64

Thus, simple Interest for 1 year = $64

Now,

∵ If the simple Interest is $64, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₄ years

∴ If the simple Interest is $128, then the time = ¹/₆₄ × 128 years

= ^{1 × 128}/₆₄ years

= ¹²⁸/₆₄ = 2 years

Thus, time (T) = 2 years Answer