Question

The SI on a certain sum of money for 3 years at 8% pa is half the CI on Rs. 16000 for 2 years at 10% pa. Find the sum placed on simple interest?

1. Rs. 6000
2. Rs. 7000
3. Rs. 5000
4. Rs. 6500

Answer 1

Correct Answer - Option 2 : Rs. 7000

Given:

For SI:

Rate = 8%

Time = 3 years

For CI:

Amount = 16,000

Time = 2 years

Rate = 10%

Formula Used:

Net % effect formula = x + y + xy/100

Calculation:

Applying the net % effect formula, we get

⇒ [10 + 10 + {(10 × 10)/100}]

⇒ 21%

Now, 21% of 16000

⇒ 21/100 × 16000

⇒ 3360

∴ Sum of SI is half of CI = 3360/2

⇒ 1680

∴ Sum = [1680 × 100/(3 × 8)]

⇒ Rs.7000

∴ the sum placed on simple interest is Rs. 7000.