A sum on simple interest at the rate of 5% per annum amounts to ₹ 4,160 in 6 years. Find the sum.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹ 3,200.
Given,
Amount = 4160
Rate (R) = 5%
Time (T) = 6 years
We know,
Amount = Principal (P) + Simple interest
Simple interest = PRT/100
According to the question,
⇒ 4160 = P(1 + RT/100)
⇒ 4160 = P(1 + 30/100)
⇒ 4160/1.3 = P
⇒ P = 3200