Multiple choice

A certain sum P when invested for four years at the rate of 10% p.a. simple interest, amounts to 22960. What will be the interest earned when (P + 600) is invested in the same rate of simple interest p.a. for four years?

  1. 6400

  2. 6800

  3. 6500

  4. 6600

  5. 6900
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For simple interest: Amount = Principal + Interest = P + (P × R × T)/100. Given 22960 = P + (P × 10 × 4)/100 = P + 0.4P = 1.4P. So P = 22960/1.4 = 16400. For (P + 600) = 17000 at 10% for 4 years, Interest = 17000 × 10 × 4/100 = 6800. The claimed answer 6800 is correct.

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