Multiple choice

What sum of money, lent at simple interest will amount to Rs. 735.94 in 3 years, when the rate of interest is 8%?

  1. Rs. 668.50

  2. Rs. 593.50

  3. Rs. 493.50

  4. Rs 93.50
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = P(1 + (RT/100)). 735.94 = P(1 + (8*3/100)) = P(1.24). P = 735.94 / 1.24 = 593.50.

AI explanation

The simple interest formula for the total amount is A = P + (P * R * T) / 100, which factors to A = P(1 + RT/100). Substituting the given values gives 735.94 = P(1 + (8 * 3) / 100) = P(1.24). Solving for the principal gives P = 735.94 / 1.24 = Rs. 593.50. The required sum is Rs. 593.50.

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