On a certain sum, the simple interest for 2 years at 5% per annum is ₹16000. Find the sum.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹1,60,000
Simple interest is the same every year, so at 5% per annum, 2 years give \(2\times5=10\%\) of the sum as interest.
10% of the sum = ₹16000
Sum \(\displaystyle=16000\times\frac{100}{10}=160000\), that is, ₹1,60,000