Question

The difference between simple interest on a certain sum at the rate of 6% per annum for 5 years and 6 years is 480. What is the sum (in Rs.)?

1. 8050
2. 7900
3. 7800
4. 8000

Answer 1

Correct Answer - Option 4 : 8000

Given:

The rate of 6% per annum for 5 years and 6 years is 480

Formula used:

Simple interest = (principal amount × rate of interest × time)/100

Calculation:

6years – 5years = 1year

1-year interest is 480

S.I. = (P × R × T)/100

⇒ 480 = (P × 1 × 6)/100

⇒ P = 8000

∴The sum is Rs 8000