Multiple choice

A person lent a certain sum of money at 5% per annum simple interest, and in 15 years the interest amounted to Rs. 250 less than the sum lent. What was the sum lent (in Rs.)?

  1. 1000

  2. 1500

  3. 2400

  4. 3000
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A Correct answer
Explanation

Simple Interest = (P * R * T) / 100. Given SI = P - 250. So, P - 250 = (P * 5 * 15) / 100. P - 250 = 0.75P. 0.25P = 250. P = 1000.

AI explanation

Using the simple interest formula, we have (P * 5 * 15) / 100 = P - 250, where P is the principal. This simplifies to 0.75P = P - 250, which yields 0.25P = 250. Solving for P gives a sum of Rs. 1000.

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