Question

If simple interest incurred on a certain sum of money after 2.5 years at 3(1/4)% rate of interest per annum is 390 then what is the value of the sum
O $2,100
O $4,900
O $7,000
0 $4,800​

Answer 1

Answer:

= 390 ÷ ( 2.5× 3.25%)

= 4800

Answer 2

Given: The simple interest incurred on a certain sum of money after 2.5 years at 3(1/4)% rate of interest per annum is 390.

To find: The value of the sum.

Solution:

• Simple interest is calculated using the given formula,

        $I = \frac{P * R * T}{100}$

• Here, I is the simple interest on the sum, P is thr principle amount or the sum, R is the rate of interest and T is the time period.
• The rate of interest is given in the form of a mixed fraction, so it is to converted to improper fraction for further calculation,

        $3\frac{1}{4} = \frac{13}{4}$

• On replacing the terms with the values given in the question,

        $390 = \frac{P * 13 *2.5}{100 * 4}$

        $P = 4800$

Therefore, the value of the sum is Rs. 4800.