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Question : What sum of money should be invested to earn a simple interest of INR 5,040 in 3 years and 6 months at a 12% rate of interest per annum?

Option 1: INR 9,000

Option 2: INR 11,000

Option 3: INR 15,000

Option 4: INR 12,000


Team Careers360 24th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: INR 12,000


Solution : Simple Interest (SI) = INR 5,040
Time (T) = 3 years 6 months = 42 months
Rate (R) = 12%
Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
$⇒ 5040 = \frac{(\text{P} × 42 × 12)}{1200}$
$⇒42P = 504000$
$\therefore P = 12000$
Hence, the correct answer is INR 12,000.

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