How many years will Tk. 1500 need at 4% simple interest to earn the same interest as Tk. 2000 earns in 3 years at 5% simple interest?

A

4 years

B

5 years

C

6 years

D

8 years

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Question: How many years will Tk. 1500 need at 4% simple interest to earn the same interest as Tk. 2000 earns in 3 years at 5% simple interest?

Solution:
Interest from Tk. 2000 in 3 years at 5%:
SI = (P × R × T)/100
= (2000 × 5 × 3)/100
= 300 Tk.

Now,
Tk. 1500 to Produce the Same Interest (Tk. 300) at 4%:
Principal, P = Tk. 1500
Interest, SI = Tk. 300
Interest Rate, R = 4%
​ Time, T = ? years

SI = PRT/100
T = (SI × 100)/(P × R)
T = (300 × 100)/(1500 × 4)
T = 30000/6000
T = 5 years

 

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Updated: 8 hours ago

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