What sum (in ₹) will earn a simple interest of ₹240 in 3 years at 16% per year rate of interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 500.
SI = (P × R × T) ÷ 100
⇒ 240 = (P × 16 × 3) ÷ 100
⇒ 240 = (48P) ÷ 100
⇒ 240 × 100 = 48P
⇒ 24,000 = 48P
⇒ P = 24,000 ÷ 48 = ₹500