Multiple choice

A person lent a certain sum of money at 4 percent simple interest and in 8 years the interest amounted to Rs 340 less than the sum lent. Find the sum lent?

  1. Rs. 500

  2. Rs. 600

  3. Rs. 756

  4. Rs. 660
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A Correct answer
Explanation

Let the sum be P. Simple interest for 8 years at 4% = (P × 4 × 8)/100 = 0.32P. Given that interest = P - 340. So 0.32P = P - 340, which gives 0.68P = 340, therefore P = 340/0.68 = Rs 500.

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