If the simple interest on a certain sum of money for 4 years at the rate of 12.5% p.a. is Rs.4500 less than its principal then find simple interest (in Rs.).
Answer & explanation
Correct answer: option 3
\(\frac{P\;×\;25\;×\;4}{2\;×\;100}\) = P - 4500
⇒ \(\frac{P}{2}\) = 4500
⇒ P = 9000
⇒ Simple Interest = 9000 - 4500 = 4500