The difference between simple interest on a certain sum at the annual rate of 12 percent for 4 years and 7 years is Rs. 72. What is the sum?
Show answer & explanation
Correct answer: A
Explanation
Given:
Interest rate (R) = 12% per annum
Time = 4 years and 7 years
Difference in simple interest = Rs. 72
Formula:
SI = (P × R × T) / 100
SI for 4 years = (P × 12 × 4) / 100
SI for 7 years = (P × 12 × 7) / 100
Difference = (P × 12 × (7 − 4)) / 100
72 = (P × 12 × 3) / 100
72 = 36P / 100
72 = 0.36P
P = 200
Amount = Rs. 200