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Q: The total simple interest earned on a sum of money increases by Rs. 600 when the rate of interest increases by 2% per annum. If the investment was made for 5 years, find the sum of money that was invested ?

  • 1
    Rs. 6000
  • 2
    Rs. 5550
  • 3
    Rs. 7500
  • 4
    Rs. 6580
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Answer : 1. "Rs. 6000"
Explanation :

Answer: A) Rs. 6000 Explanation: Let the sum invested be Rs. P Let the rate of interest be R% per annum => Interest earned for 5 years = (P x 5 x R/100) = PR/20 Now, given that the interest earned increased by Rs. 600 if the Rate increased to (R+2)% => SI = (P x 5 x (R+2))/100 = PR/20 + 10P/100 Hence, PR/20 + 10P/100 = PR/20 + 600 => P = 6000 Therefore, the sum invested is Rs. 6000

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