Multiple choice

In S.I, if the rate of interest would have been 4% higher, a man would obtain Rs. 400 more in 2 years. Find the principal.

  1. Rs. 4,000

  2. Rs. 5,000

  3. Rs. 6,000

  4. Rs. 10,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: I = PRT/100. The increase in interest is (P * 4 * 2) / 100 = 400. 8P/100 = 400. P = 40000/8 = 5000.

AI explanation

Using the simple interest formula, the extra interest is calculated as (Principal x Extra Rate x Time) / 100. Substituting the given values yields (Principal x 4 x 2) / 100 = 400. Solving for the principal, we find 8 x Principal / 100 = 400, so the Principal is 400 x 100 / 8 = Rs. 5000.

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