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Select the correct answerA sum was put at simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 112 more. The sum is:

Question

Select the correct answerA sum was put at simple interest at a certain rate for 2 years. Had it been put at 4% higher rate, it would have fetched Rs. 112 more. The sum is:

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Solution

The problem is about simple interest and we can use the formula for simple interest to solve it. The formula for simple interest is I = PRT/100, where I is the interest, P is the principal amount (the initial sum), R is the rate of interest, and T is the time.

In this problem, we know that the time is 2 years and the difference in interest is Rs. 112 when the rate is increased by 4%. We can set up the equation as follows:

112 = P * 4 * 2 / 100

Solving for P, we get:

P = 112 * 100 / (4 * 2) = Rs. 1400

So, the sum is Rs. 1400.

This problem has been solved

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