The simple interest on a certain sum for 4 years at 23% per annum is ₹11,960 less than the simple interest on the same sum for 8 years. Find the sum.
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Correct answer: D
Explanation
The correct answer is option 4 i.e 13000.
Let the principal = P
Simple interest for 8 years – simple interest for 4 years = ₹11,960
SI for 8 years = P × 23 × 8 / 100 = 1.84P
SI for 4 years = P × 23 × 4 / 100 = 0.92P
Difference = 1.84P – 0.92P = 0.92P
So, 0.92P = 11,960
P = 11,960 ÷ 0.92 = 13,000