Multiple choice

Simple interest on a certain sum at the rate of 7% per annum for 4 years and 5 years differs by Rs. 2401. What is the sum?

  1. Rs. 23,400

  2. Rs. 32,222

  3. Rs. 34,300

  4. Rs. 40,000

  5. Rs. 50,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference in interest = P * R * (T2 - T1) / 100. 2401 = P * 7 * (5 - 4) / 100. 2401 = 7P / 100. P = 240100 / 7 = 34300.

AI explanation

Using the formula for simple interest, the difference in interest for an extra year is calculated as (P multiplied by R multiplied by 1) divided by 100. Substituting the given values, we get 2401 equals (P multiplied by 7 multiplied by 1) divided by 100, which simplifies to 240100 divided by 7. Solving this gives the principal sum as Rs. 34,300.

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