Multiple choice

What sum of money will produce Rs. $28,600$ as an interest in $3$ years and $3$ months at $2.5\%$ p.a. simple interest?

  1. Rs. $3,52,000$
  2. Rs. $3,22,000$
  3. Rs. $3,42,000$
  4. Rs. $3,32,000$
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A Correct answer
Explanation

SI = 28600, R = 2.5%, T = 3.25 years. P = (SI * 100) / (R * T) = (28600 * 100) / (2.5 * 3.25) = 2860000 / 8.125 = 352000.

AI explanation

Convert the time of 3 years and 3 months into 3.25 or 13/4 years, then use the simple interest formula where Interest = P(R)(T) / 100. Substituting the given values results in 28600 = P(2.5)(3.25) / 100, which simplifies to 28600 = P(8.125) / 100. Solving for P gives P = 2860000 / 8.125, resulting in a principal of Rs. 3,52,000.

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