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- The total simple interest earned on a sum of money increases by Rs.
Question 1:
The total simple interest earned on a sum of money increases by Rs. 600 when the rate of interest increases by 2% per annum. If the investment was made for 5 years,find the sum of money that was invested ?
A. Rs. 7500
B. Rs. 5550
C. Rs. 6000
Feedback Let the sum invested be Rs. P
Let the rate of interest be R% per annum
=> Interest earned for 5 years = (P x 5 x R/100) = PR/20
Now, given that the interest earned increased by Rs. 600 if the Rate increased to (R+2)%
=> SI = (P x 5 x (R+2))/100 = PR/20 + 10P/100=> P = 6000
Therefore, the sum invested is Rs. 6000
Let the rate of interest be R% per annum
=> Interest earned for 5 years = (P x 5 x R/100) = PR/20
Now, given that the interest earned increased by Rs. 600 if the Rate increased to (R+2)%
=> SI = (P x 5 x (R+2))/100 = PR/20 + 10P/100
Therefore, the sum invested is Rs. 6000
D. Rs. 6580
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