Multiple choice

Vikram received a sum of money, denoted as x, from his grandfather and chose to invest it in a fixed deposit that offers simple interest. After 6 years, the total amount in the deposit grew to Rs. 14,448. If the fixed deposit had an annual interest rate of 12%, what is the original principal amount 'x' that Vikram invested?

  1. Rs. 8,100

  2. Rs. 8,250

  3. Rs. 8,400

  4. Rs. 8,550

  5. Rs. 8,700
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Amount = P(1 + rt/100). 14448 = x(1 + 0.12 * 6) = x(1 + 0.72) = 1.72x. x = 14448 / 1.72 = 8400.

AI explanation

Using the simple interest formula for total amount A = P + (P * R * T) / 100, we substitute the known values to get 14448 = P + (P * 12 * 6) / 100. This simplifies to 14448 = P + 0.72P, or 14448 = 1.72P. Solving for the principal gives x = 14448 / 1.72, which equals Rs. 8,400.

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