Find the sum of money which must be invested at simple interest for 8 months at 6% per annum in order to earn ₹250 as interest.
Answer & explanation
Correct answer: option 4
We know that ,
Simple interest = \(\frac{P × R × T }{100}\)
8 months = \(\frac{8 }{12}\) years = \(\frac{2 }{3}\) years
250 = \(\frac{P × 6 × 2 }{100 × 3}\)
250 = \(\frac{P }{25 }\)
P = 6250
So , Amount invested was = Rs. 6250