Question

A sum of money was invested for 2 years at a fixed interest rate. Had that money been invested at a 5% higher rate of interest, it would have gained Rs. 200 more. Find the amount?

A. Rs. 3000

B. Rs. 2600

C. Rs. 5000

D. Rs. 2000

1. A
2. B
3. C
4. D

Answer 1

Correct Answer - Option 4 : D

Given:

Time = 2 years

Rate of interest = 5%

S.I. = Rs. 200

Formula used:

S.I. = P × R% × T

Calculation:

Let the Principal be P.

S.I. = P × R% × T

⇒ 200 = P × 5/100 × 2

⇒ P = Rs. 2000

∴ The amount is Rs. 2000.