A sum was put at simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 60 more. Find the sum?
Answer: Rs. 750
Explanation
Let the principal amount be P.
Let the original rate of interest be R%.
The interest earned at the original rate for 2 years is (P x R x 2)/100.
If the rate were 4% higher, the interest earned would be (P x (R+4) x 2)/100.
The difference in interest earned is Rs. 60, so we can set up the equation:
(P x (R+4) x 2)/100 - (P x R x 2)/100 = 60
Simplifying the equation:
2P(R+4) - 2PR = 6000
Expanding and simplifying:
8P = 6000
Dividing both sides by 8:
P = 750
So, the sum is Rs. 750.
