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    Question

    A man invested certain sum at simple interest of r% p.a.

    such that it amounts to 120% of itself in 4 years. Find the interest earned when Rs. 2600 is invested at simple interest of r% p.a. for 3 years.
    A Rs. 320 Correct Answer Incorrect Answer
    B Rs. 330 Correct Answer Incorrect Answer
    C Rs. 390 Correct Answer Incorrect Answer
    D Rs. 350 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the sum invested be Rs. ‘P’ Therefore, interest earned in 4 years = 1.2P – P = Rs. 0.2P ATQ; 0.2P = (P × r × 4) ÷ 100 Or, r = 20 ÷ 4 Or, r = 5 So, required interest earned = (2600 × 5 × 3) ÷ 100 = Rs. 390

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