How much is the simple interest on a sum of money Rs 5000 at the rate of 10% p. a in 2 years. In how many years Rs8000 produces the same interest at the rate of 8% p. a

Solution:

The simple interest is given by formula:

Where,

p is the principal

n is number of years  

r is rate of interest

From given,

p = 5000

r = 10 %

n = 2 years

Therefore,

Thus the simple interest on a sum of money Rs 5000 at the rate of 10% p. a in 2 years isRs 1000

In how many years Rs8000 produces the same interest at the rate of 8% p. a

P = 8000

r = 8 %

S.I = 1000

n = ?

Therefore,

Thus, in 1.6 years, Rs 8000 produces the same interest at the rate of 8% p. a