A person lent a certain sum of money at the rate of 4% simple interest per annum. In 8 years, the interest amounted to ₹340 less than the sum lent. Find the sum lent.

Correct option is C

Given:

Rate of interest = 4% per annum.

Time = 8 years.

The interest amounted to ₹340 less than the sum lent.

Formula Used:

The formula for simple interest is:

Simple Interest =$$\frac{P \times R \times T}{100}$$​

Where:

P = principal (the sum lent),

R = rate of interest,

T = time period.

Solution:

Let the sum lent be P (principal).

​$$\frac{P \times 4 \times 8}{100} = P - 340$$​

​$$\frac{32P}{100} = P - 340$$​​

​$$\frac{8P}{25} = P - 340$$​

8P = 25(P - 340)

8P = 25P - 8500

8P−25P = −8500

-17P = -8500

17P = 8500

P =$$\frac{8500}{17} = 500$$​

The sum lent is ₹500.

Alternate Method:​