Question

A sum, when invested at 20% simple interest per annum, amounts to ₹2160 after 3 years. What is the simple interest (in ₹) on the same sum at the same rate in 2 year?

• A. 1080
• B. 270
• C. 2160
• D. 540

Answer 1

Answer:

D. 540

1. Understand the Simple Interest Formula:

• A = P + (P R T) / 100

  • A = Amount after T years

  • P = Principal (initial sum of money)

  • R = Rate of interest per annum

  • T = Time period in years

2. Use the given information to find the principal (P):

• A = ₹2160

• R = 20%

• T = 3 years

• Substitute the values into the formula:

  • 2160 = P + (P x 20 x 3) / 100

  • 2160 = P + 60P / 100

  • 2160 = P + 0.6P

  • 2160 = 1.6P

• Solve for P:

  • P = 2160 / 1.6

  • P = ₹1350

3. Calculate the simple interest for 2 years:

• P = ₹1350

• R = 20%

• T = 2 years

• Simple Interest (SI) = (P x R x T) / 100

  • SI = (1350 20 2) / 100

  • SI = 54000 / 100

  • SI = ₹540

Therefore, the simple interest on the same sum at the same rate in 2 years is ₹540.