Multiple choice

Sunil lent a sum of money at 4 percent simple interest. In 8 years the interest amounted to Rs.3,400 less than the sum lent. The sum lent was -

  1. Rs.7,000

  2. Rs.5,000

  3. Rs.5,700

  4. Rs.6,000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Let sum be P. Interest = P * 0.04 * 8 = 0.32P. Given P - 0.32P = 3400. 0.68P = 3400. P = 3400 / 0.68 = 5000.

AI explanation

Using the simple interest formula, the interest is calculated as (Principal * 4 * 8) / 100, which equals 0.32 times the Principal. The problem states this interest is Rs.3,400 less than the Principal, giving the equation Principal - 0.32 * Principal = 3400. This simplifies to 0.68 * Principal = 3400, so the Principal is 3400 / 0.68. The sum lent was Rs.5,000.

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