A sum fetched a simple interest of Rs 3,040 at the rate of 8% p.a. in 5 years. What is the sum?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Rs 7600
A sum fetched a simple interest of Rs. 3,040 at the rate of 8% p.a in 5 years.
Simple Interest, SI = (P × R × T)/100
Amount = P + SI (where P = Principal, R = Rate of interest per year, T = Time in years)
Let the sum be Rs. x
According to the question -
(x × 8 × 5)/100 = 3040
x × 40 = 304000
x = 304000/40
x = 7600