Question

Find the sum that will amount to Rs. 9,900 in 4 years at 8% simple interest per annum?
1. Rs. 7,500
2. Rs. 7,700
3. Rs. 7,600
4. Rs. 7,800

Answer 1

Correct Answer - Option 1 : Rs. 7,500

Given:

Amount (A) = Rs.9,900

Rate (R) = 8%

Time (T) = 4 years.

Formula Used:

A = P + S.I.

S.I. = (P × R × T)/100

Where,

S.I. → Simple Interest

P → Principal

R → Rate 

T → Time 

Calculations:

Let the principal be Rs. P.

According to the question,

S.I. = (P × 8 × 4)/100

⇒ S.I. = 8P/25

So, Amount = P + S.I.

⇒ 9900 = P + 8P/25 = 33P/25

⇒ P = Rs. 7,500

∴  The sum is Rs. 7,500.