The simple interest on a certain sum of money for 4 years at 20% per annum is Rs 6000 less than the sum. What is the simple interest?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs 24000
At 20% per annum for 4 years, the simple interest is \(4\times20\%=80\%\) of the sum. The remaining 20% of the sum is the Rs 6000 gap.
Simple interest \(=80\%\) of the sum
Sum \(-\) interest \(=20\%\) of the sum \(=6000\), so the sum \(=30000\)
Simple interest \(=80\%\times30000=24000\)
The simple interest is Rs 24000, which is Rs 6000 less than the sum of Rs 30000.