Multiple choice

The simple interest on a certain sum at 8% per annum for 3 years is Rs. 1242 more than the simple interest on the same sum for the same period at 5% per annum. What is the sum?

  1. Rs. 11,990

  2. Rs. 12,200

  3. Rs. 13,800

  4. Rs. 14410

  5. Rs. 15,600
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference in interest = (P * 8 * 3 / 100) - (P * 5 * 3 / 100) = 1242. (24P - 15P) / 100 = 1242. 9P / 100 = 1242. P = 124200 / 9 = 13800.

AI explanation

The difference in interest rates is 8% - 5% = 3% per annum. Over 3 years, the total simple interest difference on the sum is 3 * 3% = 9% of the sum. Given this equals Rs. 1242, the principal sum is calculated as 1242 / 0.09 = Rs. 13,800.

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