A certain sum of money amounts to Rs 880 in 2 years at theannual rate of 5% simple interest. Find the sum.Rs 800Rs 850Rs 820Rs 780

To solve this problem, we need to use the formula for simple interest which is I = PRT/100, where I is the interest, P is the principal amount (the sum we are trying to find), R is the rate of interest, and T is the time.

From the problem, we know that the total amount after 2 years is Rs 880. This is the sum of the principal amount and the interest. We also know that the rate of interest is 5% per annum and the time is 2 years.

Let's denote the principal amount as P. The interest earned in 2 years is 880 - P.

We can set up the equation as follows:

880 - P = P * 5 * 2 / 100

Solving this equation will give us the value of P, which is the principal amount or the sum of money we are trying to find.

Let's solve it:

100 * (880 - P) = P * 5 * 2 88000 - 100P = 10P 88000 = 110P P = 88000 / 110 P = Rs 800

So, the sum of money is Rs 800.