Multiple choice

The simple interest obtained when a sum of money is invested for 4 years at 18% per annum is Rs 854 more than the simple interest obtained if the same sum of money invested for 2 years at 22% per annum. What is the amount obtained when the same sum of money invested for 4 years at 18% per annum?

  1. 4260

  2. 5246

  3. 2192

  4. 3708

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let principal = P. SI at 18% for 4 years = P × 18 × 4/100 = 0.72P. SI at 22% for 2 years = P × 22 × 2/100 = 0.44P. Difference = 0.72P - 0.44P = 0.28P = 854, so P = 3050. Amount = P + SI = 3050 + 0.72 × 3050 = 3050 + 2196 = 5246. Option B is correct.

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