Multiple choice

A sum fetched a total simple interest of Rs. 1,200 at the rate of 7.5% per year, in 4 years. What is the sum (in Rs.)?

  1. 4,000

  2. 6,000

  3. 8,000

  4. 7,500
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A Correct answer
Explanation

Simple Interest = (P * R * T) / 100. 1200 = (P * 7.5 * 4) / 100. 1200 = (P * 30) / 100. 1200 = 0.3P. P = 1200 / 0.3 = 4000.

AI explanation

Using the simple interest formula Principal equals (100 multiplied by Simple Interest) divided by (Rate multiplied by Time), we substitute the interest of Rs. 1,200, rate of 7.5%, and time of 4 years. The calculation is (100 multiplied by 1200) divided by (7.5 multiplied by 4), which simplifies to 120,000 divided by 30, resulting in a principal sum of Rs. 4,000.

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