Multiple choice

A sum money amount lent at simple interest amounts to Rs.880 in 2 years and to Rs.920 in 3 year.The sum of money (in rupees) is-

  1. 700

  2. 760

  3. 784

  4. 800
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Interest for 3rd year = 920 - 880 = Rs. 40 (this is the annual interest). Principal for 2 years = 880 - 40 = Rs. 840. Principal = 840 - 40 = Rs. 800. Verification: SI = P×R×T, here interest is constant at Rs.40/year, so P = 800.

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