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Question : A sum becomes INR 27,720 in 7 years at the rate of 14 % per annum on simple interest. What is the sum?

Option 1: INR 13,000

Option 2: INR 14,700

Option 3: INR 15,000

Option 4: INR 14,000


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: INR 14,000


Solution : Let $P$ be the Principal.
Simple Interest, SI = Amount – principal = $27720 – P$
Simple Interest = $\frac{\text{Principal × term × Rate}}{100}$
⇒ $27720 – P$ = $\frac{P×7×14}{100}$
⇒ $2772000$ = $98P + 100P$
⇒ $P$ =$\frac{2772000}{198}$ = INR 14,000
Hence, the correct answer is INR 14,000.

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