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Answer: (A) 10,200
Explanation
The rate of interest 16 ⅔% is equivalent to the fraction ⅙. For a period of 3 years, we can assume the principal P to be 6³ = 216 units. The amount A after 3 years is calculated as P(1 + r)³, which gives 216 × (⁷⁄₆)³ = 343 units. The compound interest is the difference between the amount and the principal, 343 - 216 = 127 units.
Given that the compound interest is 6,350, we equate 127 units to 6,350. Thus, 1 unit equals (6,350)/(127) = 50. The principal P is 216 × 50 = 10,800.
To find the simple interest for 5 ⅔ years at the same rate, we use the formula SI = P × R × T. Substituting the values, we get SI = 10,800 × ⅙ × ¹⁷⁄₃. Simplifying the expression, 10,800 divided by 18 is 600. Multiplying 600 by 17 yields 10,200.