A sum, when invested for 2 years at the rate of 10% per annum at simple interest, amounts to ₹4,800 on maturity. What is the sum invested?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e ₹4,000
maturity amount = interest + principal = 4,800
maturity amount = principal + (Principal × rate × time ) / 100
4800 = principal + ( Principal × 10 × 2 ) / 100
4800 = principal +( principal x 20 ) / 100
4800 = principal + 0.2 × principal
4800 = 1.2 x principal
principal = 4000
So initially sum invested = 4000