Question

A sum was invested at SI at a certain rate for 4 years. Had it been invested at $2\%$ higher rate, it would have fetched Rs. 56 more? Find the sum.

• A. Rs. 500
• B. Rs. 600
• C. Rs. 700
• D. Rs. 800

Answer 1

The correct option is C

Rs. 700

$\frac{P\times (R+2)\times 4}{100}-\frac{P\times 4\times R}{100}=56$
$\frac{4PR+8P-4PR}{100}=56$
$\frac{4P\times 2}{100}=56$
$P=Rs.700$

Therefore sum = Rs. 700.