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Rahul invested a sum of money at Simple Interest at a certain rate of interest for three years. Had it been invested at a 4% higher rate, it would have fetched Rs.480 more. Find out the Principal amount that was invested by Rahul?
  • a)
    3000
  • b)
    4000
  • c)
    5000
  • d)
    4500
  • e)
    None of the Above
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Rahul invested a sum of money at Simple Interest at a certain rate of ...
B. 4000
Explanation: x – Principal Extra amount = 4% for 3 years = 12% of x = 480 x = (480/12)*100 = 4000
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Most Upvoted Answer
Rahul invested a sum of money at Simple Interest at a certain rate of ...
B. 4000
Explanation: x – Principal Extra amount = 4% for 3 years = 12% of x = 480 x = (480/12)*100 = 4000
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Community Answer
Rahul invested a sum of money at Simple Interest at a certain rate of ...
Given:
- Principal amount = Unknown
- Rate of interest = Unknown
- Time = 3 years
- Difference in interest = Rs. 480

To Find:
- Principal amount invested by Rahul

Assumption:
Let's assume that the principal amount invested by Rahul is P and the rate of interest is R%.

Calculation:
1. According to the given information, if the amount was invested at a 4% higher rate, it would have fetched Rs. 480 more.
2. This means that the difference in interest between the two rates can be represented as:
Difference in interest = P * (R+4)/100 * 3 - P * R/100 * 3
Rs. 480 = P * 3R/100 + P * 12/100 - P * 3R/100
Rs. 480 = P * 12/100
Rs. 480 = 12P/100
Rs. 480 * 100 = 12P
Rs. 48000 = 12P
P = Rs. 4000

Answer:
Therefore, the principal amount invested by Rahul is Rs. 4000, which is option B.
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Rahul invested a sum of money at Simple Interest at a certain rate of interest for three years. Had it been invested at a 4% higher rate, it would have fetched Rs.480 more. Find out the Principal amount that was invested by Rahul?a)3000b)4000c)5000d)4500e)None of the AboveCorrect answer is option 'B'. Can you explain this answer?
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