Multiple choice

A certain amount of money, when reckoned at simple interest of 9½% per annum, amounts to Rs. 1416 after 5 years. Find the amount of money.

  1. Rs. 1600

  2. Rs. 1400

  3. Rs. 1200

  4. Rs. 960
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest formula: A = P(1 + rt/100). 1416 = P(1 + (9.5 * 5)/100). 1416 = P(1 + 47.5/100) = P(1.475). P = 1416 / 1.475 = 960.

AI explanation

Using the simple interest formula, the principal equals 100 multiplied by the amount and then divided by the sum of 100 and the product of the rate and time. Substituting the given values, the principal is 100 multiplied by 1416 and then divided by the sum of 100 and the product of 9.5 and 5. The calculation is 141600 divided by 147.5, which simplifies by multiplying the numerator and denominator by 2 to equal 283200 divided by 295, resulting in a principal of Rs. 960.

Keep practicing — related questions