Multiple choice

An amount was invested at a simple rate of interest p.a. for 5 years. It would have fetched Rs. 300 more had it been invested at 2% higher rate. What was the amount invested?

  1. Rs. 3300

  2. Rs. 3000

  3. Rs. 2000

  4. Rs. 2300
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let P be the principal. (P * (R+2) * 5) / 100 - (P * R * 5) / 100 = 300. (5P * 2) / 100 = 300. 10P / 100 = 300. P/10 = 300. P = 3000.

AI explanation

Using the formula for the difference in simple interest, the extra interest equals (Principal * Rate * Time) / 100. Substituting the given values gives 300 = (Principal * 2 * 5) / 100. Solving this, 10 times the principal equals 30000, so the amount invested is Rs. 3000.

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