Multiple choice

A person lent certain sum of money at the annual rate of 25 percent on simple interest. In 6 years the interest amounted to Rs. 360 more than the sum lent. What is the sum lent?

  1. Rs. 600

  2. Rs. 360

  3. Rs. 720

  4. Rs. 540
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For 6 years at 25%, simple interest equals 1.5 times the principal (25% × 6 = 150%). Since this interest is Rs. 360 more than the principal, we have 1.5P = P + 360, giving 0.5P = 360, so P = Rs. 720. Option A (Rs. 600) would give interest = 1.5 × 600 = 900, which is Rs. 300 more than principal.

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