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Question : The amount received after 8 years on a certain sum of money invested at the rate of 18% simple interest per annum is INR 1,220. What was the initial sum invested?

Option 1: INR 500

Option 2: INR 480

Option 3: INR 420

Option 4: INR 450


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: INR 500


Solution : Total amount = INR 1,220
Term, $n$ = 8 years
Rate, $R$ = 18%
Let $P$ be the principal sum.
Simple interest, SI = $1220-P$
Simple Interest = $\frac{\text{Principal × time × Rate}}{100}$
$⇒1220-P = \frac{P×8×18}{100}$
$⇒122000-100P = 144P$
$⇒244P = 122000$
$\therefore P = \frac{12200}{244} = 500$
Hence, the correct answer is INR 500.

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