Multiple choice

A sum was invested for 3 years at simple interest at a certain rate. Had it been invested at 4% higher rate of interest, then it would have fetched Rs. 600 more. The sum was

  1. Rs. 4,000

  2. Rs. 4,950

  3. Rs. 5,000

  4. Rs. 5,150
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest formula: I = PRT/100. The difference in interest is (P * (R+4) * 3 / 100) - (P * R * 3 / 100) = 600. This simplifies to (P * 4 * 3) / 100 = 600, so 12P = 60000, P = 5000.

AI explanation

Using the formula for simple interest, the extra interest earned is calculated as (Principal * Extra Rate * Time) / 100. Substituting the given values gives 600 = (Principal * 4 * 3) / 100, which simplifies to 600 = 12 * Principal / 100. Solving for the principal yields Principal = (600 * 100) / 12, resulting in Rs. 5,000.

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