Multiple choice

The simple interest on a sum of money deposited for 6 years at 4.5% per annum is Rs. 270, then the sum is

  1. Rs. 1,000

  2. Rs. 1,050

  3. Rs. 1,075

  4. Rs. 2,000
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A Correct answer
Explanation

Simple Interest = (P * R * T) / 100. 270 = (P * 4.5 * 6) / 100. 270 = P * 27 / 100. P = 270 * 100 / 27 = 1000.

AI explanation

Using the simple interest formula SI = (P * R * T) / 100, we substitute the given values to find the principal: 270 = (P * 4.5 * 6) / 100. This simplifies to 270 = P * 0.27, so P = 270 / 0.27. Solving this gives the sum as Rs 1,000.

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