If ₹1,875 becomes ₹2,625 in 4 years, what will ₹24,000 become at the end of 9 years at the same rate of interest, under simple interest?
- (a)₹43,200
- (b)₹21,600
- (c)₹45,600
- (d)₹34,800
Answer
Why
Correct — C. First recover the rate from the pair you are given.
Interest = 2625 − 1875 = ₹750 over 4 years
R = (750 × 100) ⁄ (1875 × 4) = 75000 ⁄ 7500 = 10% per annum
Now apply 10% to ₹24,000 for 9 years:
SI = (24000 × 10 × 9) ⁄ 100 = ₹21,600
Amount = 24,000 + 21,600 = ₹45,600 → option (c).
Why the others are wrong
- (a)₹43,200 — ₹43,200 is the amount after 8 years, not 9 — interest of ₹19,200 on ₹24,000 at 10%. The term in the question is nine years.
- (b)₹21,600 — ₹21,600 is the interest by itself. The question asks what ₹24,000 becomes, so the principal has to be added back to it.
- (d)₹34,800 — ₹34,800 implies interest of ₹10,800, which is 45% of ₹24,000 and so a rate of 5% a year. The first sum fixes the rate at 10%, since ₹750 on ₹1,875 is 40% over four years.
Concept
Simple interest is linear: SI = P × R × T ⁄ 100 and Amount = P + SI. The growth factor 1 + RT⁄100 does not depend on the principal, so a rate learnt from one sum transfers straight to another.
That is what makes this a two-stage question. Stage one reads the rate out of ₹1,875 becoming ₹2,625 in four years. Stage two applies that rate to ₹24,000 for nine years.
The shortcut version skips the rate formula: the factor is 1.4 over four years, so 0.1 a year, so 1.9 over nine years, and 24,000 × 1.9 = 45,600.
The question asks what ₹24,000 will become, not what interest it earns, and both numbers are in the option list. Read the last four words of the stem before choosing.
Key facts
- SI = P × R × T ⁄ 100, and the amount is the principal plus that interest.
- Under simple interest the growth factor 1 + RT⁄100 is identical for every principal.
- ₹1,875 growing to ₹2,625 is a factor of 1.4, so RT = 40 and the rate is 10% over four years.
- At 10% for nine years the factor is 1.9, so ₹24,000 becomes ₹45,600.
Study next
Common traps
- Answering the interest ₹21,600 instead of the amount.
- Carrying the four-year term over to the second sum.
- Treating the growth as compound, which would take ₹24,000 past ₹56,000 in nine years.
This is the two-stage form: recover the rate from a principal-and-amount pair, then reapply it to a new sum and term.
On 11 Sep 2024, 12:30, Quant Q.25 the unknown runs the other way and the time is asked, for Rs 8,400 reaching Rs 11,928 at 7%. On 9 Sep 2024, 12:30, Quant Q.7 two sums at different rates are compared instead.
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