Answer: Option B
The formula for simple interest is given by:Simple Interest (S.I) = (P * R * T) / 100where,P = Principal amountR = Rate of interest per annumT = Time period in years
In the given question, the principal amount is not known, so we need to find it using the given information. We are given that the sum amounts to Rs 840 in 5 years at the rate of 8% per annum simple interest. This means that the interest earned per year is:
I = (P * R * T) / 100 = (P * 8 * 1) / 100 = (8P/100)
Therefore, the total interest earned in 5 years would be:5I = 5(8P/100) = (40P/100)
We know that the sum amount (S) after 5 years is Rs 840, which is the principal amount (P) plus the interest earned (I) over 5 years:S = P + I = P + (40P/100)
Substituting the given values, we get:840 = P + (40P/100)84000 = 100P + 40P84000 = 140PP = 600
Now that we have found the principal amount, we can find the total interest earned over 5 years using the formula for simple interest:S.I = (P * R * T) / 100 = (600 * 8 * 5) / 100 = Rs. 240
Finally, we can calculate the total amount (S) after 5 years, which is the principal amount (P) plus the total interest earned (S.I):S = P + S.I = 600 + 240 = Rs. 840
Hence, the correct option is BIf you think the solution is wrong then please provide your own solution below in the comments section .