Multiple choice

A sum deposited at a certain rate for 4 years gives a certain simple interest. Had it been deposited at 2% higher rate, it would have fetched Rs. 56 more. Find the sum.

  1. Rs. 700

  2. Rs. 720

  3. Rs. 760

  4. Rs. 800
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A Correct answer
Explanation

Let sum be P and rate be R. (P * (R+2) * 4)/100 - (P * R * 4)/100 = 56. (P * 4 * 2)/100 = 56. 8P = 5600. P = 700.

AI explanation

Using the simple interest difference formula, the extra interest equals principal multiplied by extra rate multiplied by time divided by 100. The extra interest is Rs. 56 for a 2 percent higher rate over 4 years, so 56 equals P multiplied by 2 multiplied by 4 divided by 100. Solving for P gives 56 multiplied by 100 divided by 8, which equals Rs. 700. The sum is Rs. 700.

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