The simple interest on a certain sum for 4 years at 14% per annum is ₹6,160 less than the simple interest on the same sum at the same rate for 8 years. Find the sum.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹11,000.
Let's denote the principal sum as P.
Simple Interest (SI) = (P × R × T) / 100
Where:
P = Principal amount
R = Rate of interest per annum
T = Time period in years
According to the problem:
⇒ SI for 8 years - SI for 4 years = 6160
⇒ (P × 14 × 8) / 100 - (P × 14 × 4) / 100 = 6160
Simplifying the equation:
⇒ (112P - 56P) / 100 = 6160
⇒ 56P = 616000
⇒ P = 616000 / 56
⇒ P = 11000
Therefore, the principal sum is ₹11,000.