The difference between simple interest on a certain sum at the annual rate of 12 percent for (3/2) years and (7/2) years is Rs. 1920. What is the sum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. Rs. 8000.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
The difference in time = 7/2 - 3/2 = 4/2 = 2 years
Now,
⇒ 1920 = (P × 12 × 2)/100
⇒ 192000 = 24P
⇒ P = 192000/24
⇒ P = 16000/2
⇒ P = Rs. 8000
Hence, the sum is Rs. 8000