Question

What sum (in ₹) will earn a simple interest of ₹240 in 3 years at 16% per year rate of interest?

• A. 750
• B. 500
• C. 1000
• D. 250

Answer 1

Answer:

B. 500

Given:

• Simple Interest (SI = 240)

• Rate (R = 16%)

• Time (T = 3) years

Formula:

$SI = \frac{P \times R \times T}{100}$

$240 = \frac{P \times 16 \times 3}{100}$

$240 = \frac{48P}{100}$

$240 = 0.48P$

$P = \frac{240}{0.48} = 500$