A sum of money is invested at a certain rate of simple interest. If the interest

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Question: A sum of money is invested at a certain rate of simple interest. If the interest earned in 4 years is $200, what will be the interest earned in 10 years at the same rate?

Options:

$400
$500
$600
$800

Correct Answer: $400

Solution:

If $200 is earned in 4 years, then in 1 year, it earns $50. Therefore, in 10 years, it will earn $500.

A sum of money is invested at a certain rate of simple interest. If the interest

Practice Questions

A sum of money is invested at a certain rate of simple interest. If the interest earned in 4 years is $200, what will be the interest earned in 10 years at the same rate?

$400
$500
$600
$800

Questions & Step-by-Step Solutions

A sum of money is invested at a certain rate of simple interest. If the interest earned in 4 years is $200, what will be the interest earned in 10 years at the same rate?

Step 1: Understand that simple interest is earned at a constant rate over time.
Step 2: Note that the interest earned in 4 years is $200.
Step 3: To find the interest earned in 1 year, divide the total interest by the number of years: $200 ÷ 4 years = $50 per year.
Step 4: Now, to find the interest earned in 10 years, multiply the annual interest by 10: $50 per year × 10 years = $500.
Step 5: Conclude that the interest earned in 10 years at the same rate is $500.

Simple Interest – Understanding how simple interest is calculated using the formula I = P * r * t, where I is interest, P is principal, r is rate, and t is time.

A sum of money is invested at a certain rate of simple interest. If the interest

What’s inside this PDF?

A sum of money is invested at a certain rate of simple interest. If the interest

Practice Questions

Questions & Step-by-Step Solutions

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