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      Question

      A sum of money amounts to Rs. 5600 in 5 years at 8%

      simple interest per annum. Find the principal and the interest earned.
      A Rs.3200 and Rs.1100 Correct Answer Incorrect Answer
      B Rs.4000 and Rs.1600 Correct Answer Incorrect Answer
      C Rs.4070 and Rs.2600 Correct Answer Incorrect Answer
      D Rs.4700 and Rs.1800 Correct Answer Incorrect Answer

      Solution

      Formula: A = P(1 + rt/100) 5600 = P(1 + 8Γ—5/100) = P(1 + 40/100) = P(1 + 0.40) = 1.40P P = 5600 / 1.40 = 4000 Simple interest = Amount βˆ’ Principal = 5600 βˆ’ 4000 = 1600 Answer: Principal = Rs. 4000, Interest = Rs. 1600

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