Multiple choice

A money amounts to Rs. 1200 in 3 years & to Rs. 1280 in 4 years at Simple Interest. The sum is :

  1. Rs. 840

  2. Rs. 960

  3. Rs. 900

  4. Rs. 940
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The difference between amounts in 4 years and 3 years (Rs. 1280 - Rs. 1200 = Rs. 80) equals the simple interest earned in one year. So annual interest = Rs. 80. In 3 years, total interest = 3 × 80 = Rs. 240. Therefore, principal sum = Amount in 3 years - Interest for 3 years = Rs. 1200 - Rs. 240 = Rs. 960. Option (B) is correct. This is a standard property of simple interest where the interest earned each year is constant.

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