What sum will amount to Rs.6,600 in 4 years at 8% per annum at simple interest?

• A) Rs 6,000
• B) Rs 5,000
• C) Rs 4,000
• D) Rs 6,200

To find the principal amount that will grow to Rs. 6,600 in 4 years at a simple interest rate of 8% per annum, we can use the formula for simple interest:

Simple Interest Formula

The formula is:

SI = P × R × T

Where:

• SI = Simple Interest
• P = Principal amount
• R = Rate of interest (as a decimal)
• T = Time (in years)

Calculating the Total Amount

The total amount (A) after interest is given by:

A = P + SI

In this case, we know:

• A = Rs. 6,600
• R = 8% = 0.08
• T = 4 years

Finding the Principal

First, we can express the simple interest in terms of P:

SI = P × 0.08 × 4 = 0.32P

Now, substituting SI in the total amount formula:

6,600 = P + 0.32P

This simplifies to:

6,600 = 1.32P

Now, solving for P:

P = 6,600 / 1.32

P ≈ 5,000

Final Answer

The sum that will amount to Rs. 6,600 in 4 years at 8% per annum at simple interest is Rs. 5,000. Therefore, the correct option is B) Rs. 5,000.