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Rs.1500 is invested at 10% S.I. and interest is added to the Principal after every 5 years. In how many years it amounts to Rs.2500 ?

Question

Rs.1500 is invested at 10% S.I. and interest is added to the Principal after every 5 years. In how many years it amounts to Rs.2500 ?

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Solution

To solve this problem, we need to understand the concept of Simple Interest (S.I.). The formula for Simple Interest is I = PRT/100, where P is the principal amount, R is the rate of interest, and T is the time in years.

Given in the problem: P = Rs. 1500 R = 10% The final amount (A) = Rs. 2500

We need to find T.

Step 1: Calculate the total interest earned. The total interest earned is the final amount minus the principal, which is Rs. 2500 - Rs. 1500 = Rs. 1000.

Step 2: Substitute the values into the Simple Interest formula and solve for T. 1000 = (1500 * 10 * T) / 100 Solving for T, we get T = 1000 * 100 / (1500 * 10) = 6.67 years.

So, it will take approximately 6.67 years for an investment of Rs. 1500 at 10% simple interest to amount to Rs. 2500.

This problem has been solved

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