Quantitative Aptitude • Simple & Compound InterestMedium
The simple interest on a sum of money at 8% per year for 5 years is ₹1,600. What is the sum?
A. ₹20,000
B. ₹5,600
C. ₹640
D. ₹4,000✓ Correct Answer
💡 Solution & Explanation
Simple interest = principal × rate × time ÷ 100, so principal = interest × 100 ÷ (rate × time) = 1,600 × 100 ÷ (8 × 5) = ₹4,000. Check: 8% of ₹4,000 is ₹320 per year, and 5 years of that is ₹1,600.
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