The simple interest on a sum of ₹ x at 8.5% p.a. for 12 years is ₹ 3298 less than the amount of the same sum invested at the same rate 4(4/5) years at simple interest. The value of x is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 8,500.
Formula used:
SI = PRT/100
Where, P = principle, R = rate and T = time
Calculations:
Let the principle amount be x
According to the question,
⇒ x + [(x × 8.5 × 24)/(100 × 5)] - [(x × 8.5 × 12)/(100)] = 3298
⇒ x + 0.408x - 1.02x = 3298
⇒ 0.388x = 3298
⇒ x = 8500