Multiple choice

The maturity values of an amount in 5 and 6 years at 8% simple interest p.a. are Rs. 1120 and Rs. 1184, respectively. Find the amount.

  1. Rs. 560

  2. Rs. 800

  3. Rs. 160

  4. Rs. 600
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A = P + (P*R*T)/100. 1120 = P + P*0.08*5 = 1.4P. P = 1120/1.4 = 800.

AI explanation

The difference in maturity values for 6 years and 5 years represents one year of simple interest, so the interest is 1184 minus 1120 = Rs. 64. Since the rate is 8%, the principal is calculated using P = (SI x 100)/(R x T), which gives (64 x 100)/(8 x 1) = Rs. 800.

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