Multiple choice

A person lent some amount at $11\%$ p.a. simple interest, and after $4$ years he interest amounted to Rs. $1200$ less than the amount lent. What is the amount that person lent?

  1. $1717.17$
  2. $2142.85$
  3. $3237.47$
  4. $4347.16$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let the principal amount lent be P. The simple interest after 4 years at 11% per annum is 0.44P. Since the interest is Rs. 1200 less than the principal, we set up the equation P - 0.44P = 1200, which simplifies to 0.56P = 1200. Solving for P gives approximately Rs. 2142.85.

AI explanation

Let the amount lent be P, so the simple interest after four years is calculated as P multiplied by 11 multiplied by 4 and divided by 100, which equals 0.44P. The question states that this interest is Rs. 1200 less than the principal, giving the equation P minus 0.44P equals 1200, so 0.56P equals 1200. Solving for P gives 1200 divided by 0.56, which equals Rs. 2142.85. The result is 2142.85.

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