A certain sum of money is given at a certain rate of simple interest for 4 years. Had it been given at 11% higher rate for the same time, it would have fetched ₹1320 more. Find the sum (in ₹).
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 3000
Let the interest be x, the rate be r and the principal be P.
Simple interest = Principal × Rate × Time/100
⇒ x = P × R × 4/100
⇒ x = 4PR/100 ...(1
If rate was more by 11%.
⇒ Simple interest = P × (R + 11) × 4/100
⇒ x + 1320 = [P × (R + 11) × 4]/100
⇒ (4PR/100) + 1320 = 4PR/100 + 44P/100
⇒ 44P = 132000
⇒ P = 132000/44 = 3000