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    A sum was invested at a certain rate of simple interest per annum for 2 years. Had it been invested at 3% per annum more rate than the existing rate,
    Question

    A sum was invested at a certain rate of simple interest per annum for 2 years. Had it been invested at 3% per annum more rate than the existing rate, the simple interest accrued in the 2 years would have been ₹240 more. The sum invested was:

    A.

    ₹16000

    B.

    ₹4000

    C.

    ₹24000

    D.

    ₹6000

    Correct option is B

    Given:

    Difference in simple interest = ₹240

    Time = 3 years

    Formula Used:

    Simple Interest = P×R×T100\frac{P \times R \times T}{100}​​

    Solution:

    Let the rate of interest be r

    Then interest = P×r×2100\frac{P \times r \times 2}{100}​​

    Interest when rate is increased by 3%

    =P×(r+3)×2100= \frac{P \times (r+3) \times 2 }{100}​​

    Difference is ₹240

    P×(r+3)×2100P×r×2100=240\frac{P \times (r+3) \times 2 }{100} - \frac{P \times r \times 2}{100} = 240​​

    2Pr1002Pr100+6P100=240\frac{2Pr}{100} - \frac{2Pr}{100} + \frac{6P}{100}= 240​​

    6P100=240\frac{6P}{100}= 240​​

    P=240×1006=4000P = \frac{240 \times 100}{6}= ₹4000​​

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