Multiple choice

A man lent a sum of money at the rate of simple interest of 4%. If the interest for 8 yrs is Rs. 340 less than the principal, then the principal is

  1. Rs. 500

  2. Rs. 520

  3. Rs. 540

  4. Rs. 560

  5. Rs. 580
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A Correct answer
Explanation

SI = (P * R * T) / 100. SI = (P * 4 * 8) / 100 = 0.32P. Given P - SI = 340, so P - 0.32P = 340. 0.68P = 340. P = 340 / 0.68 = 500.

AI explanation

Using the simple interest formula, the interest for 8 years equals P multiplied by 4 multiplied by 8 divided by 100, which simplifies to 0.32P. The problem states that the interest is Rs. 340 less than the principal, creating the equation 0.32P equals P minus 340. Solving for P involves subtracting 0.32P from 1P to get 0.68P equals 340, meaning the principal is Rs. 500.

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