Question 74

The amount received after 8 years on a certain sum of money invested at the rate of 18% simple interest per annum is ₹1,220. What was the initial sum invested?

Solution

The amount received after 8 years on a certain sum of money invested at the rate of 18% simple interest per annum is ₹1,220.

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

$$1220=principal+\frac{principal\times18\times8}{100}$$

$$1220=principal+principal\times1.44$$

$$1220=principal\times2.44$$

principal = 500

So the initial sum invested is ₹500.

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