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What is the simple interest for five years on a sum of Rs. 700 if the rate of interest for the first 3 years is 8% per annum and for another 2 years is 7% per annum?
  • a)
    400
  • b)
    392
  • c)
    352
  • d)
    266
Correct answer is option 'D'. Can you explain this answer?
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Given,
Principal (P) = Rs. 700
Rate of interest for the first 3 years (R1) = 8%
Rate of interest for next 2 years (R2) = 7%

To find: Simple Interest (S.I) for 5 years

Calculation:
1. Simple Interest for the first 3 years:
S.I = (P × R1 × T1) / 100
= (700 × 8 × 3) / 100
= 168

2. Simple Interest for the next 2 years:
S.I = (P × R2 × T2) / 100
= (700 × 7 × 2) / 100
= 98

3. Total Simple Interest for 5 years:
S.I = S.I for first 3 years + S.I for next 2 years
= 168 + 98
= 266

Therefore, the simple interest for five years on a sum of Rs. 700 is Rs. 266. Hence, the correct answer is option (D).
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What is the simple interest for five years on a sum of Rs. 700 if the rate of interest for the first 3 years is 8% per annum and for another 2 years is 7% per annum?a)400b)392c)352d)266Correct answer is option 'D'. Can you explain this answer?
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