Multiple choice

The simple interest on a certain sum at 15% p.a. for three years is Rs. 7,200. The sum is:

  1. Rs. 16,000

  2. Rs. 24,000

  3. Rs. 32,000

  4. Rs. 48,000
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A Correct answer
Explanation

Simple interest is calculated as (Principal * Rate * Time) / 100. Given 7200 = (P * 15 * 3) / 100, we solve for P: 7200 = 0.45 * P, so P = 7200 / 0.45 = 16000.

AI explanation

The simple interest formula is I = P * R * T / 100, where P is the principal sum, R is the rate, and T is the time. Substituting the known values gives 7200 = P * 15 * 3 / 100. This simplifies to 7200 = 45P / 100, which further simplifies to 7200 = 0.45P. Solving for P gives P = 7200 / 0.45, which equals 16000. The sum is Rs. 16,000.

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