Difficulty: Medium
Correct Answer: ₹ 35
Explanation:
Introduction / Context:
This problem requires back-calculating the principal from a given amount under simple interest and then using that principal to find interest for a different time and rate. The linear nature of simple interest keeps calculations direct and proportional.
Given Data / Assumptions:
Concept / Approach:
First find P from A = P(1 + r * t / 100). Then compute I for the new t and r with I = P * r * t / 100.
Step-by-Step Solution:
A = P(1 + 4 * 3 / 100) = P(1 + 0.12) = 1.12PSo P = 2,240 / 1.12 = 2,000For 6 months at 3.5%: I = 2,000 * 3.5 * 0.5 / 100 = 35
Verification / Alternative check:
Compute the original 3-year interest at 4%: I = 2,000 * 4 * 3 / 100 = 240, amount = 2,240 as given. The interim calculation of P = ₹ 2,000 is confirmed.
Why Other Options Are Wrong:
₹ 30 and ₹ 25 understate the half-year interest; ₹ 50 and ₹ 150 overstate it for the specified rate and principal.
Common Pitfalls:
Misreading 6 months as 6 years or as 1 month, and mixing compound interest with simple interest, can distort results. Ensure time is in years for the formula.
Final Answer:
₹ 35
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