The difference between simple interest on a certain sum at the annual rate of 8 percent for 5 years and 6 years is Rs. 26. What is the sum?
Answer & explanation
Correct answer: option 1
If Principal = 100
Interest = Principal × Time
Simple interest at 8% for 5 years = 8 × 5
= 40%
Simple interest at 8% for 6 years = 8 × 6
= 48%
ATQ
48% - 40% = 26
8% = 26
1% = \(\frac{26}{8}\)
100% = \(\frac{26}{8}\) × 100
= Rs 325