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A certain sum (in ₹)is invested at simpl...

A certain sum (in ₹)is invested at simple interest at y% per annum for 4 years. Had it been invested at (y + 4) % per annum at simple interest, it would have fetched ₹4,452 more as interest. What is the sum?

A

₹24,400

B

₹31,800

C

₹30,400

D

₹27,825

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will use the formula for simple interest and set up the equations based on the information given in the question. ### Step 1: Define the Variables Let the principal sum (the amount invested) be \( X \) (in ₹). ### Step 2: Write the Simple Interest Formula The formula for simple interest is given by: \[ \text{Simple Interest} = \frac{P \times R \times T}{100} \] where \( P \) is the principal amount, \( R \) is the rate of interest per annum, and \( T \) is the time in years. ### Step 3: Calculate Simple Interest for Both Rates 1. For the first investment at \( y\% \) for 4 years: \[ \text{SI}_1 = \frac{X \times y \times 4}{100} \] 2. For the second investment at \( (y + 4)\% \) for 4 years: \[ \text{SI}_2 = \frac{X \times (y + 4) \times 4}{100} \] ### Step 4: Set Up the Equation Based on the Given Information According to the problem, the difference in interest between the two investments is ₹4,452: \[ \text{SI}_2 - \text{SI}_1 = 4452 \] Substituting the expressions for \( \text{SI}_1 \) and \( \text{SI}_2 \): \[ \frac{X \times (y + 4) \times 4}{100} - \frac{X \times y \times 4}{100} = 4452 \] ### Step 5: Simplify the Equation Factoring out the common terms: \[ \frac{4X}{100} \left((y + 4) - y\right) = 4452 \] This simplifies to: \[ \frac{4X}{100} \times 4 = 4452 \] ### Step 6: Solve for \( X \) Now, simplifying further: \[ \frac{16X}{100} = 4452 \] Multiplying both sides by 100: \[ 16X = 445200 \] Now, divide by 16: \[ X = \frac{445200}{16} = 27825 \] ### Conclusion The sum invested is ₹27,825.
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