What sum of money will amount to Rs.416 in 1 year 4 months at 3% per annum simple interest?
1. Rs.395
2. Rs.400
3. Rs.410
4. Rs.390
1. Rs.395
2. Rs.400
3. Rs.410
4. Rs.390
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Correct Answer – Option 2 : Rs.400
Given
Amount = Rs. 416
Time = 1 year 4 months
Rate of interest = 3%
Formula used
SI = (P × R × T)/100
Amount(A) = P + SI
SI → Simple interest, P → Principal, R → Rate, T → Time
Calculation
Time = 1 year 4 months = 4/3 years
A = P + (P × R × T)/100
⇒ 416 = P + (P × 3 × 4/3)/100
⇒ 41600 = 100P + 4P
⇒ 104 P = 41600
⇒ P = Rs. 400