The difference of simple interest on a sum of money for 8 years and 10 years is Rs.200. If the rate of interest is 10 % p.a, then what is the sum of money?
Answer & explanation
Correct answer: option 1
Let initial sum = P
Rate = 10%
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
\(\frac{P ×10 × 10 }{100}\) - \(\frac{P ×10 × 8 }{100}\) = 200
20P = 20000
P = 1000