Multiple choice

A sum was lent at simple interest at a certain rate for 3 years. Had it been lent at a rate 4% higher than the previous rate, it would have fetched 408 more. What was the sum?

  1. Rs. 3000

  2. Rs. 3200

  3. Rs. 3400

  4. Rs. 3640

  5. Rs. 3870
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let principal be P and rate be R% per annum. Simple interest for 3 years = P × R × 3/100. At (R+4)% rate, interest = P × (R+4) × 3/100. Difference = 408 = P × 4 × 3/100 = 12P/100. Therefore P = 408 × 100/12 = Rs. 3400.

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