Consider the simple interest of the following:
(A) A sum of Rs 1200 at 3% per annum for 3 years.
(B) A sum of Rs 5500 at 7% per annum for 2 years.
(C) A sum of Rs 200 at 4% per annum for 4 years.
(D) A sum of Rs 2000 at 14% per annum for 4 years.
Arrange the above in descending order.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (D), (B), (A), (C)
Simple interest is \(\text{SI}=\frac{P\times R\times T}{100}\), where \(P\) is the sum, \(R\) the rate per cent per annum and \(T\) the time in years.
(A) \(\displaystyle\frac{1200\times3\times3}{100}=\) Rs 108
(B) \(\displaystyle\frac{5500\times7\times2}{100}=\) Rs 770
(C) \(\displaystyle\frac{200\times4\times4}{100}=\) Rs 32
(D) \(\displaystyle\frac{2000\times14\times4}{100}=\) Rs 1120
A larger sum does not always earn more: rate and time count as much as the principal, as (D) beats the bigger sum of (B).