Multiple choice

A sum of money at simple interest amounts to Rs. 403 in 3 years at the rate of 10% per annum. What is the value of the sum?

  1. Rs. 400

  2. Rs. 380

  3. Rs. 310

  4. Rs. 345
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the simple interest formula A = P(1 + rt), where A = 403, r = 10% = 0.10, and t = 3 years. Substituting: 403 = P(1 + 0.10 × 3) = P(1.3). Therefore, P = 403/1.3 = 310. Option A (Rs. 400) and B (Rs. 380) are incorrect as they don't satisfy the formula.

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