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      Question

      A sum of money amounts to Rs. 6800 in 4 years at 9%

      simple interest per annum. Find the principal and the interest earned.
      A Rs.9000 and Rs.1105 Correct Answer Incorrect Answer
      B Rs.5500 and Rs.1870 Correct Answer Incorrect Answer
      C Rs.5000 and Rs.1800 Correct Answer Incorrect Answer
      D Rs.2000 and Rs.1200 Correct Answer Incorrect Answer

      Solution

      Amount A = P(1 + rt/100) 6800 = P(1 + 9Γ—4/100) = P(1 + 36/100) = P Γ— 1.36 P = 6800 / 1.36 = Rs. 5000 Simple interest = Amount βˆ’ Principal = 6800 βˆ’ 5000 = Rs. 1800 Answer: Principal = Rs. 5000, Interest = Rs. 1800

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