Multiple choice

A sum, when lent out at the rate of 5/2% simple interest per annum, amounts to Rs. 630 after 2 years. Find the sum.

  1. Rs. 600

  2. Rs. 500

  3. Rs. 550

  4. Rs. 615
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A Correct answer
Explanation

Simple interest formula: A = P(1 + rt/100). Here, A = 630, r = 2.5, t = 2. So 630 = P(1 + (2.5 * 2)/100) = P(1 + 0.05) = 1.05P. P = 630 / 1.05 = 600.

AI explanation

Using the amount formula for simple interest, Amount equals P plus P times R times T divided by 100. Substituting the given values, 630 equals P times the quantity 1 plus 2.5 times 2 divided by 100. This simplifies to 630 equals P times 1.05, so P equals 630 divided by 1.05, which gives Rs. 600.

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