Multiple choice

In simple interest what sum amounts of Rs.1120/- in 4 years and Rs.1200/- in 5 years?

  1. Rs. 500

  2. Rs. 600

  3. Rs. 800

  4. Rs. 900
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Let principal be P and rate be r% per annum. Amount after 4 years = P + (P×r×4)/100 = 1120. Amount after 5 years = P + (P×r×5)/100 = 1200. Subtracting: (P×r)/100 = 80, which is the simple interest for 1 year. Substituting back: P + 320 = 1120, so P = 800. Therefore, Rs. 800 amounts to Rs. 1120 in 4 years and Rs. 1200 in 5 years at simple interest.

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