Question

Sunil lent a sum of money at 4 percent simple interest. In 8 years the interest amounted to Rs.3,400 less than the sum lent. The sum lent was -

• A. Rs.7,000
• B. Rs.5,000
• C. Rs.5,700
• D. Rs.6,000

Answer 1

Answer: (B)

Rs.5,000

Let the sum lent $=x$

Rate $=4$%

$T=8$

S.I in years $=\frac{x\times 4\times 8}{100}=\frac{8x}{25}$

ATP,

$x-\frac{8x}{25}=3400$

$\Rightarrow 25x-8x=25\times 3400$

$\Rightarrow 17x=25\times 3400$

$\Rightarrow x=5000$

Hence, Sum of money lent $=5000$.