If a certain sum of money at 5% annual simple interest to ₹810 in 21/2 year , then the sum is:

If a certain sum of money at 5% annual simple interest to…

If a certain sum of money at 5% annual simple interest to ₹810 in $2\frac{1}{2} year$ , then the sum is:

Show answer & explanation

Correct answer: C

Explanation

The correct answer is option 3 i.e. ₹720.

SI = $PRT\over100$

Amount(A) = P + SI

⇒ 810 = P + $P\times5\times5\over2\times100$

⇒ 810 = P(1 + $1\over8$ )

⇒ 810 = $9\over8$ P

⇒ P = ₹720