The simple interest on a sum of money at 6.25% per annum for 8 years is half of the sum. The sum is______.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Data inadequate
Simple interest is always the same fraction of the sum. At 6.25% per annum for 8 years it is \(\displaystyle \frac{6.25\times8}{100}=\frac{50}{100}=\frac{1}{2}\), that is, half of any sum.
So the condition “the interest is half of the sum” is true for every sum. To find the sum, at least one amount in rupees is needed, such as the interest earned or the amount at the end. No amount in rupees is given, so ₹ 6,000, ₹ 8,000 and ₹ 10,000 all fit equally.