Multiple choice

A sum was invested at simple interest at a certain interest for 2 years. It would have fetched Rs 60 more had it been invested at 2% higher rate. What was the sum?

  1. Rs 1500

  2. Rs 1300

  3. Rs 2500

  4. Rs 1000
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A Correct answer
Explanation

Let sum be P. SI = P * R * T / 100. Difference in interest = P * (R+2) * 2 / 100 - P * R * 2 / 100 = 60. P * 2 * 2 / 100 = 60. 4P / 100 = 60. P = 6000 / 4 = 1500.

AI explanation

The extra interest earned is solely due to the two percent higher rate applied to the principal over two years. Using the formula for simple interest, the additional amount equals Principal multiplied by two percent multiplied by two years. Therefore, 60 equals Principal multiplied by four divided by 100, which gives Principal equal to 60 multiplied by 100 divided by four, making the sum 1500.

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