Question 51

Ramya lent a certain sum of money at 4% simple interest to Seema and in 8 years the interest amounted to ₹3,400 less than the sum lent. Find the sum lent by Ramya to Seema.

Solution

Let's assume the principal amount is 'P'.

Ramya lent a certain sum of money at 4% simple interest to Seema and in 8 years the interest amounted to ₹3,400 less than the sum lent.

$$interest=\frac{principal\times\ rate\times\ time}{100}$$

$$\left(P-3400\right)=\frac{P\times4\times8}{100}$$

$$\left(P-3400\right)=\frac{32P}{100}$$

$$P-\frac{32P}{100}=3400$$
$$P-0.32P=3400$$
0.68P=3400
$$P=\frac{3400}{0.68}$$
$$P=\frac{340000}{68}$$
P = 5000

Sum lent by Ramya to Seema = 5000

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