Answer:
a) Rs1000
b) 1.56 years
Step-by-step explanation:
The simple interest on a principal P at r% in t years is given as I=Prt
We substitute P=5000, r=0.1 and t=2 years to get.
[tex]I = 5000 \times 0.1 \times 2[/tex]
[tex]I = 1000[/tex]
The interest is RS 1000
At 8% rate and principal RS 8000, we want to find how many years it will take to produce an interest of Rs1000
[tex]1000 = 8000 \times 0.08 \times t[/tex]
[tex]1000 = 640t[/tex]
[tex]t = 1.56[/tex]
