A sum, when invested for 2 years at the rate of 10% per annum at simple interest, amounts to ₹4,800 on maturity. What is the sum invested?

₹4,000

Simple interest for 2 years = 2 × 10% = 20%

Let initial sum invested = 100%

Amount = Principal + Interest

= 100% + 20%

= 120%

ATQ,

120% = 4800

1% = \(\frac{4800}{120 }\) = 40

Initial sum invested = 100% = 40 × 100 = Rs. 4000