Question

The simple interest for four years is one-fourth of the principal. The sum that will amount to Rs. $450$ in two years at the same rate is

• A. Rs. $400$
• B. Rs. $425$
• C. Rs. $500$
• D. Rs. $525$

Answer 1

The correct option is A Rs. $400$

Let the principal be Rs. P.
S.L = $\frac{p\times R\times T}{100}\Rightarrow \frac{p}{4}=\frac{p\times 4\times R}{100}$
$\Rightarrow R=\frac{100}{16}=\frac{25}{4}$ % per annum
$\Rightarrow P=\frac{SI\times 100}{Rate\times Time}\Rightarrow P=\frac{(450-p)\times 100}{\frac{25}{4}\times 2}$
$\Rightarrow p=450\times 8-8P$
$\Rightarrow 9P=450\times 8\Rightarrow P=Rs.400$