Question : A person lends a certain sum of money at the rate of 6% per annum on simple interest and the interest received in 13 years is Rs. 220 less than the sum lent. What is the sum lent?
Option 1: Rs. 1000
Option 2: Rs. 600
Option 3: Rs. 800
Option 4: Rs. 1200
Correct Answer: Rs. 1000
Solution :
Given: Rate = 6%
Time = 13 years
Let the principal be $P$.
So, simple interest = $P-220$
We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
$⇒P - 220 = \frac{P × 6 × 13}{100}$
$⇒100P - 22000 = 78P$
$⇒22P = 22000$
$\therefore P = 1000$
Hence, the correct answer is Rs. 1000.
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