Simple Interest — Principal tripled after 5 years: A sum earns Rs 200 simple interest in the first 5 years. In the next 5 years, the principal is tripled at the same rate. What is the total interest over 10 years?

Difficulty: Easy

Correct Answer: ₹ 800

Explanation:


Introduction / Context:
Under simple interest, interest is proportional to principal, rate, and time. If the principal changes for a subsequent period, the new interest scales linearly with the new principal for that later period.



Given Data / Assumptions:

  • First 5 years interest = Rs 200 on principal P at rate r
  • After 5 years, principal becomes 3P at the same r
  • Next 5 years interest is based on 3P


Concept / Approach:
From the first period: P * r * 5 = 200 ⇒ P * r = 40. For the next period: SI = (3P) * r * 5 = 15 * (P * r) = 15 * 40 = 600. Total interest = 200 + 600 = 800.



Step-by-Step Solution:

Compute P * r from first 5 years: 200 / 5 = 40.Next 5 years on 3P: 3 * 5 * (P * r) = 15 * 40 = 600.Total interest = 200 + 600 = Rs 800.


Verification / Alternative check:

Proportionality check confirms linear scaling with principal and time under SI.


Why Other Options Are Wrong:

  • ₹ 650, ₹ 700, ₹ 750, ₹ 850: Do not equal 200 + 3×(200) for equal durations and rate.


Common Pitfalls:

  • Treating the process as compound interest.
  • Forgetting to triple only for the second 5-year block.


Final Answer:
₹ 800.

More Questions from Simple Interest

Discussion & Comments

No comments yet. Be the first to comment!
Join Discussion