Correct Answer - Option 4 : 800 Rs.
Given:
Time = 4 years
Rate = 12.5%
Formula used:
Amount = Simple interest + Principal
SI = (P x R x T)/100
where P = Principal,
R = Rate of Interest,
T = Time Period of the Loan/deposit in years,
SI = Simple Interest
Calculations:
Let, the principal is P
SI = (P x R x T)/100
⇒ P - 400 = (P × 4 × 12.5)/100
⇒ P - 400 = P × 4 × (1/8)
⇒ P - 400 = P/2
⇒ 2P - 800 = P
⇒ P = 800 Rs.
∴ The sum is 800 Rs.