What sum of money will produce the interest of Rs 180 at the rate of simple interest of 6 percent per annum in 4 year?

Answer 1

With simple interest the interest is not re-invested and does not gain interest.

Rs 180 over 4 years = Rs 180 ÷ 4 = Rs 90 per year.

Interest rate is 6% per year, thus Rs 90 = 6% of the capital
→ 6% x capital = Rs 90
→ capital = Rs 90 ÷ 6%
= Rs 90 ÷ 6/100
= Rs 90 x 100/6
= Rs 1500