A certain sum of money fetches simple interest of Rs.4,016.25 at the rate of 7% per annum in 5 years. What is the sum?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. Rs.11,475.
S.I. = (P × R × T)/100
where, S.I. = Simple Interest, P = Principal, T = Time and R = Rate
⇒ 4016.25 = (P × 7 × 5)/100
⇒ 401625 = P × 35
⇒ P = Rs.11475