A sum becomes ₹6840 in 3 years at 9% simple interest per annum. What is the original sum?
Show answer & explanation
Correct answer: A
Explanation
Given:
Amount (A) = ₹6840
Interest rate (R) = 9% per annum
Time (T) = 3 years
By formula:
A = P(1 + RT/100)
6840 = P(1 + 9 × 3/100)
6840 = P(1 + 27/100)
6840 = P(1.27)
P = 6840 / 1.27
P = ₹5385.83