If ₹5,000 becomes ₹5,900 in one year, what will ₹8,000 become at the end of 5 years at the same rate of simple interest?

Correct option is D

Given:

Principal₁ = ₹5,000

Amount₁ after 1 year = ₹5,900

Time₁ = 1 year

Principal₂ = ₹8,000

Time₂ = 5 years

Interest type: Simple Interest

Formula Used:

Simple Interest (SI) = Amount - Principal

Rate = $$\frac{\text{SI} \times 100}{\text{Principal} \times \text{Time}}$$​​

Solution:

Finding SI and Rate from Case 1

SI = 5900 – 5000 = ₹900

Rate (R) = $$\frac{900 \times 100}{5000 \times 1} = 18\%$$​​

Now,

SI = $$\frac{8000 \times 18 \times 5}{100} = ₹7200$$​​

Amount = 8000 + 7200 = ₹15,200