A sum was invested at a certain rate of simple interest per annum for 2 years. Had it been invested at 3% per annum more rate than the existing rate, the simple interest accrued in the 2 years would have been ₹240 more. The sum invested was:
- AOption (a)
₹16,000
- BOption (b)
₹4,000
- COption (c)
₹24,000
- DOption (d)
₹6,000
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Correct answer
₹4,000
Why this answer is correct
Given:
A sum was invested at a certain rate of simple interest per annum for 2 years. Had it been invested at 3% per annum more rate than the existing rate, the simple interest accrued in the 2 years would have been ₹240 more.
Formula Used:
Simple Interest = (Principal × Rate × Time) / 100
Calculation:
Let the principal be ₹P and the original rate of interest be R%.
Simple interest at the original rate for 2 years = (P × R × 2) / 100
Simple interest at the increased rate (R+3)% for 2 years = (P × (R + 3) × 2) / 100
According to the question, the difference in interest is ₹240:
\(\Rightarrow \frac{P \times (R + 3) \times 2}{100} - \frac{P \times R \times 2}{100} = 240\)
\(\Rightarrow \frac{P \times (2R + 6 - 2R)}{100} = 240\)
\(\Rightarrow \frac{2P \times 3}{100} = 240\)
\(\Rightarrow \frac{6P}{100} = 240\)
\(\Rightarrow 6P = 240 \times 100\)
\(\Rightarrow P = \frac{240 \times 100}{6}\)
\(\Rightarrow P = 4000\)
The sum invested was ₹4,000.