By Mansi Yadav

Verified by Ajay Kumar

A sum of ₹5,000 amounts to ₹6,500 in 3 years at simple interest. If the rate of interest is doubled, what will be the amount of the same sum in 5 years?

  1. ₹9,000

  2. ₹10,000

  3. ₹8,500

  4. ₹11,000

Answer: B

Solution

Solution: Interest for 3 years \(=6500-5000=1500\). Annual simple interest \(=1500\div3=500\), so the original rate is \(\frac{500}{5000}\times100=10\%\). The doubled rate is 20%. Interest for 5 years \(=\frac{5000\times20\times5}{100}=5000\). Amount \(=5000+5000\) = ₹10,000. Trick: First find the original rate from the given interest, then double the rate and calculate the new simple interest.

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