Hardik invests an amount of Rs. 48400 at the rate of 4% per annum for 6 yr to obtain a simple interest, later he invests the amount obtained as simple interest and the principal amount for another 6 yr at the same rate of interest. What amount of simple interest will be obtained at the end of the last 6 yr?
1. 14440.50
2. 14403.84
3. 14404.56
4. 14444
1. 14440.50
2. 14403.84
3. 14404.56
4. 14444
Correct Answer – Option 2 : 14403.84
Given:
Principal = 48400
Rate (R) = 4% pa
Time (T) = 6 yr
Calculations:
In case 1 :
SI = (P × R × T) / 100
SI = (48400 × 4 × 6) / 100
SI = 11616
Amount = Principal + SI
⇒ Amount = 48400 + 11616
⇒ Amount = 60016
In case 2:
SI = (60016 × 4 × 6) /100
⇒ SI = 14403.84
∴ The Simple interest after the last 6 years is Rs. 14403.84.