Quantitative Aptitude • Simple & Compound InterestMedium
The simple interest on a sum of money at 12% per year for 5 years is ₹3,000. What is the sum?
A. ₹25,000
B. ₹5,000✓ Correct Answer
C. ₹8,000
D. ₹1,800
💡 Solution & Explanation
Simple interest = principal × rate × time ÷ 100, so principal = interest × 100 ÷ (rate × time) = 3,000 × 100 ÷ (12 × 5) = ₹5,000. Check: 12% of ₹5,000 is ₹600 per year, and 5 years of that is ₹3,000.
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