A sum when invested for 2 years at the rate of 10 per annum at simple interest amounts to Rs4 800 on...........

Quantitative Aptitude (MTS) Simple Interest

A sum, when invested for 2 years at the rate of 10% per annum at simple interest, amounts to Rs4,800 on maturity. What is the

sum invested?

This questions was previously asked in

SSC MTS 20th July 2022 Shift-2

Rs3,600

Rs4,000

Rs3,500

Rs4,200

- We need to find the principal amount that, when invested for 2 years at 10% simple interest, matures to Rs4,800.

- Simple Interest Formula: \( \text{Simple Interest (SI)} = \frac{\text{Principal (P)} \times \text{Rate (R)} \times \text{Time (T)}}{100} \).

- Total amount after interest = Principal + Simple Interest.

- Given amount after 2 years = Rs4,800.

- Rate (R) = 10% per annum and Time (T) = 2 years.

- Let principal be P. So, Simple Interest = \( \frac{P \times 10 \times 2}{100} = 0.2P \).

- Therefore, \( P + 0.2P = 4,800 \). This simplifies to \( 1.2P = 4,800 \).

- Solving gives \( P = \frac{4,800}{1.2} = Rs4,000 \).

- Correct Answer: Option 2 - Rs4,000.

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