# What Sum of Money Will Produce Rs. 70? if

What sum of money will produce Rs. 70 as simple interest in 4 years at 3.5 % ?

- Rs. 450
- Rs. 550
- Rs. 500
- Rs. 600

**Answer: (3) Rs,500**

**Explanation:-**

Let the sum of money is Rs.X

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P – principal, R – rate & T – time.**

Simple Interest = Rs.70, Time = 4 years, Rate = 3.5% & = ?

Then,

70 = X x 35 x 4/10 x 100

70 = X x 7/10 x 5

10 = X / 50

X = Rs.500

Hence, the answer is (3) Rs.500.