mcqs Math Simple Interest In how much time a principal of $3050 will amount to $3294 at a simple interest of 2% per annum? 7235

Question: In how much time a principal of $3050 will amount to $3294 at a simple interest of 2% per annum?

(A)  3
(B)  5
(C)  4
(D)  6

Correct Answer 4

Solution And Explanation

Solution

Given,

Principal (P) = $3050

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

Amount (A) = $3294

Thus, time (T) = ?

Method (1) Using Formula

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

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $3294 – $3050 = $244

Thus, Simple Interest = $244

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

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 244}/_{3050 × 2}

= ²⁴⁴⁰⁰/₆₁₀₀

= 4 years (using formula)

Thus, Time (T) = 4 years (from time taken before calculation)Answer

Here, we have

Principal (P) = $3050

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

Simple Interest = $244 (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 $3050

= ²/₁₀₀ × 3050

= ^{2 × 3050}/₁₀₀

= ⁶¹⁰⁰/₁₀₀ = 61

Thus, simple Interest for 1 year = $61

Now,

∵ If the simple Interest is $61, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/₆₁ years

∴ If the simple Interest is $244, then the time = ¹/₆₁ × 244 years

= ^{1 × 244}/₆₁ years

= ²⁴⁴/₆₁ = 4 years

Thus, time (T) = 4 years Answer