Ajay invests a certain sum of money on simple interest at 8% p.a. for 15 years. If the interest earned by him is Rs. 58,410, then find the sum invested by him.
Show answer & explanation
Correct answer: B
Explanation
Given:
SI = 58,410
R = 8%
T = 15 years
According to the formula:
SI = (P × R × T)/100
58,410 = (P × 8 × 15)/100
58,410 = (120P)/100
58,410 = 1.2P
P = 58,410 / 1.2 = 48,675