Answer:
[tex]Rs\ 930[/tex]
Step-by-step explanation:
The simple interest formula is equal to
[tex]A=P(1+rt)[/tex]
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
step 1
Find the number of time periods t
in this problem we have
[tex]t=?\ years\\ P=Rs\ 500\\ A=Rs\ 725\\r=0.09[/tex]
substitute in the formula above and solve for t
[tex]725=500(1+0.09t)[/tex]
[tex]t=[(725/500)-1]/0.09[/tex]
[tex]t=5\ years[/tex]
step 2
what will Rs 600 amount to at 11% in same time?
we have
[tex]t=5\ years\\ P=Rs\ 600\\ A=?\\r=0.11[/tex]
substitute in the formula
[tex]A=600(1+0.11*5)[/tex]
[tex]A=600(1.55)[/tex]
[tex]A=Rs\ 930[/tex]
