Multiple choice

A sum of money amounts to Rs. 767 in 3 years, and to Rs. 806 in 4 years on simple interest at 6% annum. What is the sum ?

  1. Rs. 600

  2. Rs. 560

  3. Rs. 675

  4. Rs. 650
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The difference between amounts after 4 years and 3 years (806 - 767 = 39) is the simple interest for one year. At 6% per annum, Principal = (Interest × 100) / (Rate × Time) = (39 × 100) / (6 × 1) = 650. Verification: Interest for 3 years = 650 × 6 × 3 / 100 = 117, so Amount = 650 + 117 = 767 ✓

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