Question

What sum (in ₹) will earn a simple interest of ₹240 in 4 years at 12% per year rate of interest?

• A. 250
• B. 1000
• C. 500
• D. 750

Answer 1

Answer:

C. 500

Using the simple interest formula:

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

Given:

• SI = ₹240

• (R = 12%)

• (T = 4) years

Substitute the values:

$240=\frac{P\times12\times4}{100}$
$240=\frac{48P}{100}$
$240=\frac{12P}{25}$
$P=\frac{240\times25}{12}=500$

Required sum = ₹500