A sum is deposited in a bank which gives simple interest. The sum becomes 1.25 times in 3 years. If there is a requirement of ₹7,60,000 after seven years, how much amount (in ₹) should one deposit to fulfil the requirement?

Question

Question

This question was previously asked in

SSC CGL 2022 Tier-I Official Paper (Held On : 07 Dec 2022 Shift 2)

Answer 1

Given:

The sum becomes 1.25 times in 3 years

There is a requirement of ₹7,60,000 after seven years

Formula Used:

Simple interest = \(\frac{PRT}{100}\)

Calculations:

The sum becomes 1.25 times in 3 years

Let he invest be P

⇒ Interest earned = 1.25P - P = 0.25P

According to the formula

⇒ Simple interest = \(\frac{PRT}{100}\)

⇒ 0.25P = \(\frac{P\times R\times 3}{100}\)

⇒ R = 8.33%

There is a requirement of ₹7,60,000 after seven years, So he has to invest

⇒ Interest earned = 760000 - P

⇒ Simple interest = \(\frac{PRT}{100}\)

⇒ 760000 - P = \(\frac{P\times 8.33\times 7}{100}\)

⇒ \(\frac{58.31P }{100}\) + P = 760000

⇒ \(\frac{58.31P +100P}{100}\) = 760000

⇒ \(\frac{158.31P}{100}\) = 760000

⇒ P = 480000(Approx)

⇒ Hence, The amount he has to invest is Rs. 480000