A person lent a certain sum of money at the rate of 6 percent per annum on simple interest and the interest received in 13 years is Rs. 220 less than the sum lent. What is the sum lent?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. Rs. 1000.
Given:
Rate = 6%
Time = 13 years
Formula used:
SI = PRT/100
Where, SI = Simple interest, P = Principal, R = rate and T = Time period
Calculations:
Let the sum be P.
Simple interest = P - 220
According to the question;
⇒ P - 220 = (P × 6 × 13)/100
⇒ 100P - 22000 = 78P
⇒ 100P - 78P = 22000
⇒ 22P = 22000
⇒ P = 1000
Hence, the sum lent is Rs 1000.