A certain sum on $13 \frac{1}{2}$% per annum simple interest amounts to ₹2502.50 in 4 years. Find the sum.
Answer & explanation
Correct answer: option 2
Amount = Principal + Simple Interest
SI = \(\frac{ P × R ×T}{100}\)
= \(\frac{ P × 27 × 4}{2 × 100}\)
= \(\frac{ P × 27}{50}\)
Amount = P + \(\frac{ P × 27}{50}\)
= \(\frac{ 77P}{50}\)
ATQ,
\(\frac{ 77P}{50}\) = 2502.50
P = 1625
The correct answer is Option (2) → ₹1625