What sum of money should be invested to earn a simple interest of ₹5,040 in 3 years and 6 months at 12% rate of interest per annum?
Answer & explanation
Correct answer: option 4
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
5040 = \(\frac{Principal × 12 × 3.5 }{100}\)
Principal = \(\frac{5040 × 100 }{12×3.5}\)
= Rs. 12000