Multiple choice

Mr. Ashok invested a certain amount in a business venture that assured 8% per annum simple interest. After three years, if he got back Rs. 2400 more than what he had invested, the principal amount that he invested was

  1. Rs. 2,40,000

  2. Rs. 10,000

  3. Rs. 1,00,000

  4. Rs. 2400

  5. Rs. 12,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest I = P * r * t / 100. Given I = 2400, r = 8, t = 3. So 2400 = P * 8 * 3 / 100. 2400 = P * 24 / 100. P = 2400 * 100 / 24 = 10000.

AI explanation

Using the simple interest formula, Interest equals Principal multiplied by Rate multiplied by Time divided by 100. The interest earned is Rs. 2400, so we set up the equation 2400 equals Principal multiplied by 8 multiplied by 3 divided by 100. Solving this equation, the principal amount that he invested was Rs. 10,000.

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