The sum of simple interest on a sum at 8% p.a. for 4 years and 8 years is ₹960. The sum is:
Answer & explanation
Correct answer: option 3
Let initial sum = P
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
ATQ,
\(\frac{P ×8 × 4 }{100}\) + \(\frac{P ×8 × 8}{100}\) = 960
\(\frac{32P }{100}\) + \(\frac{64P}{100}\) = 960
\(\frac{96P }{100}\) = 960
P = Rs. 1000