Solution:
The simple interest is given by formula:
[tex]S.I = \frac{p \times n \times r }{100}[/tex]
Where,
p is the principal
n is number of years
r is rate of interest
From given,
p = 5000
r = 10 %
n = 2 years
Therefore,
[tex]S.I = \frac{ 5000 \times 2 \times 10}{100}\\\\S.I = 50 \times 20\\\\S.I = 1000[/tex]
Thus the simple interest on a sum of money Rs 5000 at the rate of 10% p. a in 2 years isRs 1000
In how many years Rs8000 produces the same interest at the rate of 8% p. a
P = 8000
r = 8 %
S.I = 1000
n = ?
Therefore,
[tex]1000 = \frac{8000 \times n \times 8}{100}\\\\1000 = 640n\\\\n = 1.5625 \approx 1.6[/tex]
Thus, in 1.6 years, Rs 8000 produces the same interest at the rate of 8% p. a
