The difference between simple interest on a certain sum at the annual rate of 10 percent for 8 years and 10 years is Rs. 80. What is the sum?
Show answer & explanation
Correct answer: B
Explanation
Given:
Rate (R) = 10% per annum
Time = 8 years and 10 years
Difference in simple interest = Rs. 80
By formula:
SI = (P × R × T) / 100
Difference = (P × R × (10 − 8)) / 100
80 = (P × 10 × 2) / 100
80 = 20P / 100
80 = 0.2P
P = 80 ÷ 0.2
P = 400
Amount = Rs. 400