Ramu invested some money at 8% simple interest per annum, and it was grown up to ₹820 in 8 years. If the same sum was invested at 20% simple interest per annum for a period of 10 years, find the amount.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. ₹1,500.
Let the sum of money invested by Ramu be x.
SI = PRT/100
where P is principal, R is rate and T is time.
According to the given question,
820 - x = x × 8 × 8/100
⇒ 64x/100 + x = 820
⇒ 164x = 82000
⇒ x = 500
Now, Amount = (500 × 20 × 10/100) + 500
⇒ 1000 + 500 = 1500