A sum was put at simple interest at a certain rate for 3 years. Had it been…
2025
A sum was put at simple interest at a certain rate for 3 years. Had it been put at 1% higher rate, it would have fetched 5100 more. Find the sum.
- A.
170,000
- B.
150,000
- C.
175,000
- D.
200,000
Attempted by 45 students.
Show answer & explanation
Correct answer: A
Solution: Set up the equation for the extra simple interest caused by a 1% increase in rate over 3 years.
Let the principal be P.
The extra interest from increasing the rate by 1% for 3 years = P × 1% × 3 = 0.03P.
Set 0.03P = 5100 and solve: P = 5100 ÷ 0.03 = 170000.
Therefore the required sum is 170,000.
Answer: 170,000