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?
Answer & explanation
Correct answer: option 2
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