A sum was put at simple interest at a certain rate for 2 years. Had it been…
2025
A sum was put at simple interest at a certain rate for 2 years. Had it been put at 1% higher rate, it would have fetched Rs.24 more. The sum is:
- A.
Rs. 600
- B.
Rs.1200
- C.
Rs. 800
- D.
Rs. 480
Attempted by 81 students.
Show answer & explanation
Correct answer: B
Solution:
Let P be the principal (the sum). The extra interest obtained by increasing the rate by 1% for 2 years is:
Extra interest = (P × 2 × 1) / 100 = 2P/100.
This extra interest is given as Rs. 24, so 2P/100 = 24.
Solve for P: P = 24 × 100 / 2 = 1200.
Therefore, the sum is Rs. 1200.