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    Question

    A sum of money amounts to Rs. 5,320 in 4 years at simple

    interest at 8% per annum. What is the principal?
    A 5,500 Correct Answer Incorrect Answer
    B 4,200 Correct Answer Incorrect Answer
    C 2,100 Correct Answer Incorrect Answer
    D 2,120 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let principal = P SI = (P Γ— R Γ— T) / 100 = (P Γ— 8 Γ— 4)/100 = 0.32P Amount = P + SI = P + 0.32P = 1.32P Given: 1.32P = 5,320 β‡’ P = 5,320 / 1.32 = 5320 Γ— (100 / 132) = 532000 / 132 132 Γ— 40 = 5,280; remainder 40 β‡’ approx 40.3 β†’ check exact: Simplify 532000/132 = (5320/1.32) = 4,200 So P = Rs. 4,200

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