mcqs Math Simple Interest In how much time a principal of $3150 will amount to $3780 at a simple interest of 5% per annum? 7252

Question: ( 1 of 10 ) In how much time a principal of $3150 will amount to $3780 at a simple interest of 5% per annum?

(A)  59
(B)  30.5
(C)  61
(D)  60

You selected 6

Correct Answer 4

Solution And Explanation

Solution

Given,

Principal (P) = $3150

Rate of Simple Interest (R) = 5% per annum

Amount (A) = $3780

Thus, time (T) = ?

Method (1) Using Formula

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

⇒ Simple Interest (SI) = Amount – Principal

⇒ SI = $3780 – $3150 = $630

Thus, Simple Interest = $630

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

⇒ T = ^{100 × SI}/_{P × R}

Thus, Time (T) = ^{100 × 630}/_{3150 × 5}

= ⁶³⁰⁰⁰/₁₅₇₅₀

= 4 years (using formula)

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

Here, we have

Principal (P) = $3150

Rate of Simple Interest (R) = 5% per annum

Simple Interest = $630 (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 = 5% of Principal

= 5% of $3150

= ⁵/₁₀₀ × 3150

= ^{5 × 3150}/₁₀₀

= ¹⁵⁷⁵⁰/₁₀₀ = 157.5

Thus, simple Interest for 1 year = $157.5

Now,

∵ If the simple Interest is $157.5, then the time = 1 year

∴ If the simple Interest is $1, then the time = ¹/_157.5 years

∴ If the simple Interest is $630, then the time = ¹/_157.5 × 630 years

= ^{1 × 630}/_157.5 years

= ⁶³⁰/_157.5 = 4 years

Thus, time (T) = 4 years Answer