Question

A certain sum of money was lent at 8% per annum simple interest and in 9 years the interest amounted to Rs. 2800 less than the sum lent. What was the sum lent (in Rs.)?
1. Rs. 10000
2. Rs. 12000
3. Rs. 18000
4. Rs. 11200

Answer 1

Correct Answer - Option 1 : Rs. 10000

Given:

Rate (R) = 8%

Time (T) = 9 years

Formula used:

S.I. = (P × R × T)/100

Where, S.I. → Simple Interest

P → Principal

R → Rate 

T → Time 

Calculations:

Let the amount lent be Rs. P.

According to the question,

S.I. = (P × R × T)/100

⇒ (P × 8 × 9)/100

⇒ S.I. = 72P/100

So, (P – 72P/100) = 2800

⇒ P = 10000

∴ The required sum is Rs. 10000.