JIPMAT 2025 (QA) - In 4 years, an amount of ₹ 6,000 becomes ₹ 8,000 at a certain rate of simple interest. In what time at the same simple interest rate, will an amount of ₹ 525 become ₹ 700? | PYQs + Solutions

JIPMAT 2025

Arithmetic

Simple & Compound Interest

Medium

In 4 years, an amount of ₹ 6,000 becomes ₹ 8,000 at a certain rate of simple interest. In what time at the same simple interest rate, will an amount of ₹ 525 become ₹ 700?

2 years

3 years

4 years

5 years

✅ Correct Option: 3

Principal

= ₹ 6000

\newline

Amount

= ₹ 8000

\newline

Thus,

\text{SI} = ₹2000

in 4 years

\text{SI per year} = ₹500

\newline

\text{Interest rate} = \dfrac{500}{6000}= \dfrac{1}{12}

Now, to

₹525

to become

₹700, \text{ SI}

required is

₹ 175

\newline

SI = {P \times N \times R}

175 = {525 \times N \times \dfrac{1}{12}}

N = \dfrac{175 \times 12 }{525} = \dfrac{12}{3}= 4

years.

Hence, the correct option is Option 3.

\newline

Shortcut: We observe, in 4 years, we get

\frac{1}{3}^{rd}

principal as interest i.e.

₹ 2000

from

₹ 6000

\newline

Similarly, to earn

₹ 175

₹525

which is also,

\frac{1}{3}^{rd}

of principal, it will take 4 years.