Multiple choice

An amount invested at simple interest gives Rs. 800 interest at 16% in 2 years. What is the principal?

  1. Rs. 4,000

  2. Rs. 3,500

  3. Rs. 5,000

  4. Rs. 2,500
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest = (P * R * T) / 100. 800 = (P * 16 * 2) / 100. 800 = 32P / 100. 80000 = 32P. P = 80000 / 32 = 2500.

AI explanation

Using the Simple Interest formula where the principal is the interest multiplied by 100 divided by the product of the rate and the time. Substitute the given values into the formula to get 800 multiplied by 100 divided by 16 divided by 2. Solving this expression gives a principal of Rs. 2500.

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