A sum becomes Rs 10000 in 10 years on simple interest at the rate of 10% per annum. What is the total interest (in Rs) of the 10 years?
- A4000
- B5000
- C2500
- D4500
Solution & Step-by-step Explanation
Let the Principal amount be P.
Rate of interest (R) = 10% per annum
Time (T) = 10 years
Amount (A) = Rs 10000
We know that Simple Interest (SI) is given by:
SI=
100
P×R×T
=
100
P×10×10
=P
Amount formula:
A=P+SI
10000=P+P
2P=10000
P=5000
Since SI=P, the total interest for 10 years is Rs 5000.
Rate of interest (R) = 10% per annum
Time (T) = 10 years
Amount (A) = Rs 10000
We know that Simple Interest (SI) is given by:
SI=
100
P×R×T
=
100
P×10×10
=P
Amount formula:
A=P+SI
10000=P+P
2P=10000
P=5000
Since SI=P, the total interest for 10 years is Rs 5000.