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John invested a sum of money at an annua...

John invested a sum of money at an annual simple interset rate of 10%. At the end of four years the amount invested plus interset earned was Rs 770. The amount invested was

A

Rs 650

B

Rs 350

C

Rs 550

D

Rs 500

Text Solution

AI Generated Solution

The correct Answer is:
To find the amount John invested, we can use the formula for simple interest and the relationship between principal, interest, and total amount. ### Step-by-Step Solution: 1. **Identify the given values:** - Let \( P \) be the principal amount (the amount invested). - The rate of interest \( R = 10\% \) per annum. - The time period \( T = 4 \) years. - The total amount after 4 years \( A = 770 \) Rs. 2. **Recall the formula for total amount in simple interest:** \[ A = P + SI \] where \( SI \) (Simple Interest) can be calculated using the formula: \[ SI = \frac{P \times R \times T}{100} \] 3. **Substituting the values into the formula:** \[ A = P + \frac{P \times R \times T}{100} \] Substituting the known values: \[ 770 = P + \frac{P \times 10 \times 4}{100} \] 4. **Simplifying the equation:** \[ 770 = P + \frac{40P}{100} \] \[ 770 = P + 0.4P \] \[ 770 = 1.4P \] 5. **Solving for \( P \):** \[ P = \frac{770}{1.4} \] \[ P = \frac{7700}{14} \] \[ P = 550 \] 6. **Conclusion:** The amount John invested was Rs 550.
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