a) ₹1025
b) ₹1055
c) ₹1125
d) ₹1155
correct answer is: c) ₹1125
Explanation
Here, Sum means ‘Principal’.
Simple Interest (S.I.) = ₹ 630
Time (t) = 7 years
Rate (r) = 8 % p.a.
We know,
S.I. =\frac{p\ \times\ r\ \times\ t}{100}
Or, P =\frac{S.I.\ \ \times\ 100}{r\ \times\ t} [interchange]
Put the value,
P =₹\left(\frac{630\times100}{8\times7}\right)
\rightarrow P =₹ 1125
So, the principal amount is ₹ 1125 .
Ans: The sum that would yield a simple interest of ₹630 in 7 years at an 8% per annum rate of interest is ₹1125.
Another version of this specific question is:
(1) Calculate the principal amount required to generate a simple interest of ₹630 over a period of 7 years at an annual interest rate of 8%.
(2) Find out the initial investment needed to earn a simple interest of ₹630 in 7 years at a 8% per annum interest rate.
(3) Determine the principal sum that would yield a simple interest of ₹630 over a 7-year period at an interest rate of 8% per annum.
(4) Calculate the sum of money needed to produce a simple interest of ₹630 over a 7-year period with an annual interest rate of 8%.
(5) What is the principal amount required to accrue a simple interest of ₹630 over 7 years at a rate of 8% per annum?