A sum was put at simple interest at a certain rate for 2 years. If it had been put at 4% higher rate, it would have fetched Rs. 480 more. Find the sum.
- ARs. 6000
- BRs. 5,000
- CRs. 6,500
- DRs. 5,900
Solution & Step-by-step Explanation
Let the sum (principal) be P.
The interest increases because the rate increases by 4% per year.
For a period of 2 years, the total increase in interest percentage is:
Total increase=4%×2=8%
This 8% increase in interest corresponds to Rs. 480:
8% of P=480
100
8
×P=480
P=
8
480×100
P=60×100=Rs. 6,000
The interest increases because the rate increases by 4% per year.
For a period of 2 years, the total increase in interest percentage is:
Total increase=4%×2=8%
This 8% increase in interest corresponds to Rs. 480:
8% of P=480
100
8
×P=480
P=
8
480×100
P=60×100=Rs. 6,000