Ramya lent a certain sum of money at 4% simple interest to Seema and in 8 years the interest amounted to ₹3,400 less than the sum lent. Find the sum lent by Ramya to Seema.
Answer & explanation
Correct answer: option 4
Let money lent by Ramya to Seema = P
ATQ ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
P - 3400 = \(\frac{P × 4 × 8 }{100}\)
P - 3400 = \(\frac{8P }{25}\)
P - \(\frac{8P }{25}\) = 3400
\(\frac{17P }{25}\) = 3400
P = Rs.5000