By Mansi Yadav

Verified by Ajay Kumar

A person invested a certain sum of money at 10% per annum simple interest. After 4 years, the interest earned was ₹3,600 less than the sum invested. What was the sum invested?

  1. ₹7000

  2. ₹6000

  3. ₹6500

  4. ₹9000

Answer: B

Solution

Solution: For 4 years at 10% simple interest, \(SI=\frac{P\times10\times4}{100}=0.4P\). Given \(P-SI=3600\), so \(P-0.4P=3600\Rightarrow0.6P=3600\Rightarrow P=6000\). The invested sum is ₹6000. Trick: The interest is 40% of the principal, so the difference is 60% of the principal.

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