What sum (in ₹) will earn a simple interest of ₹240 in 4 years at 16% per year rate of interest?

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SSC MTS 2024 Official Paper (Held On: 29 Oct, 2024 Shift 3)
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  1. 375
  2. 500
  3. 800
  4. 750

Answer (Detailed Solution Below)

Option 1 : 375
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Detailed Solution

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Given:

Simple Interest (SI) = ₹240

Time (t) = 4 years

Rate of Interest (r) = 16%

Formula used:

SI = (P × r × t) / 100

Where, P = Principal

Calculations:

240 = (P × 16 × 4) / 100

⇒ P = (240 × 100) / 64

⇒ P = 375

∴ The correct answer is option (1).

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