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A sum was put a simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 60 more. The sum is:

Correct answer: A. Rs.750

  • A. Rs.750
  • B. Rs.700
  • C. Rs.940
  • D. Rs.820

Explanation

The extra interest from a 4 percentage-point increase over 2 years is principal x 4% x 2 years. Therefore, principal x 0.08 = Rs. 60, giving principal = Rs. 60/0.08 = Rs. 750. The likely trap is Rs. 700, which may come from subtracting or misapplying the 4% increase instead of multiplying it by 2 years.

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