1. 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the sum of the interest on both the sum after 4 years is 480, the latter sum of money is ?450 750 600 550
Question
- 500 was invested at 12% per annum simple interest and a certain sum of money invested at 10% per annum simple interest. If the sum of the interest on both the sum after 4 years is 480, the latter sum of money is ?450 750 600 550
Solution
To solve this problem, we first need to understand the formula for simple interest, which is I = PRT/100, where I is the interest, P is the principal amount (the initial amount of money), R is the rate of interest, and T is the time in years.
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First, let's calculate the interest earned from the 240.
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The total interest from both investments after 4 years is given as 240.
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Now, we know that this 600.
So, the latter sum of money is $600.
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