Multiple choice

A sum fetched a total simple interest of Rs 1200 at the rate of 7.5% in 4 years. What is the sum (in Rs)?

  1. 4000

  2. 6000

  3. 8000

  4. 7500

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

Simple Interest formula: SI = P × R × T / 100. Given SI = 1200, R = 7.5%, T = 4 years. Substituting: 1200 = P × 7.5 × 4 / 100 = P × 30/100 = P × 0.3. Solving: P = 1200/0.3 = Rs. 4000. The principal amount is directly proportional to the interest when rate and time are constant.

Keep practicing — related questions