At 8% simple interest per annum a sum of money becomes Rs. 608 in \(3\frac{1}{2}\) years. What was the sum invested?

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RRB ALP CBT I 30 Aug 2018 Shift 3 Official Paper
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  1. Rs. 450
  2. Rs. 475
  3. Rs. 440
  4. Rs. 460

Answer (Detailed Solution Below)

Option 2 : Rs. 475
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Detailed Solution

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Given:

At 8% simple interest per annum a sum of money becomes Rs. 608 in \(3\frac{1}{2}\) i.e. 3.5 years.

Concept used:

Simple Interest, SI = (P × R × T)/100

Amount = P + SI

where

P = Principal amount

R = Rate of interest per year

T = Time in years

Calculation:

Let the sum invested be Rs. P.

​According to the question,

P + (P × 8 × 3.5)/100 = 608

⇒ P + 0.28P = 608

⇒ 1.28P = 608

⇒ P = 608/1.28

⇒ P = 475

∴ The sum invested is Rs. 475.

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