What sum (in ₹) will earn a simple interest of ₹240 in 4 years at 8% per year rate of interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e 750.
Simple Interest = (Principal × Rate × Time) ÷ 100
Principal = (Simple Interest × 100) ÷ (Rate × Time) = (240 × 100) ÷ (8 × 4)
⇒ 24000 ÷ 32 = ₹750