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.

₹5,000

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