Multiple choice

A sum of Rs. X was put at simple interest at a certain rate for 2 years. Had it been put at 3% higher rate, it would have fetched Rs. 300 more. The value of 4X is

  1. Rs. 16,000

  2. Rs. 20,000

  3. Rs. 36,000

  4. Rs. 24,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The increase in interest is due to the 3% higher rate over 2 years, which corresponds to an extra 6% of the principal X. Since this extra interest is Rs. 300, we have 0.06 * X = 300, which gives X = Rs. 5,000. Therefore, the value of 4X is 4 * 5,000 = Rs. 20,000.

AI explanation

Using the simple interest difference formula, Extra Interest = (Principal * Higher Rate * Time) / 100. Substituting the given values results in 300 = (X * 3 * 2) / 100, which simplifies to 300 = 6X / 100. Solving for X gives X = 5000, and multiplying by 4 yields Rs. 20,000.

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