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A sum fetched a total simple interest of...

A sum fetched a total simple interest of Rs.1,858.40 at the rate of `8% p.(a)` in 5 years. What is the sum?

A

Rs.4,646

B

Rs.2,446

C

Rs.5,112

D

Rs.2,706

Text Solution

AI Generated Solution

The correct Answer is:
To find the principal sum (P) that fetched a total simple interest of Rs. 1858.40 at a rate of 8% per annum over 5 years, we can use the formula for simple interest: **Simple Interest (SI) = (P × R × T) / 100** Where: - SI = Simple Interest - P = Principal amount (the sum we want to find) - R = Rate of interest (in percentage) - T = Time (in years) ### Step-by-Step Solution: 1. **Identify the given values:** - Simple Interest (SI) = Rs. 1858.40 - Rate (R) = 8% - Time (T) = 5 years 2. **Substitute the values into the formula:** \[ 1858.40 = \frac{P \times 8 \times 5}{100} \] 3. **Simplify the equation:** - First, calculate \(8 \times 5 = 40\). - Now the equation becomes: \[ 1858.40 = \frac{P \times 40}{100} \] 4. **Multiply both sides by 100 to eliminate the fraction:** \[ 185840 = P \times 40 \] 5. **Now, divide both sides by 40 to isolate P:** \[ P = \frac{185840}{40} \] 6. **Calculate the value of P:** \[ P = 4646 \] Thus, the principal sum is **Rs. 4646**. ### Final Answer: The sum is Rs. 4646. ---
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