By Poonam

Verified by Ajay Kumar

A sum of money becomes 240% of itself in 8 years at simple interest. Find the simple interest earned when Rs. 3000 is invested at the same rate for 3 years.

  1. Rs. 1620

  2. Rs. 1430

  3. Rs. 1255

  4. Rs. 1575

Answer: D

Solution

The interest earned in 8 years is 240% − 100% = 140% of the principal. Annual rate = 140/8 = 17.5%. Simple interest for 3 years = (3000 × 17.5 × 3)/100 = ₹1,575.

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