Had the rate of simple interest been 2% higher, Nikhil would have earned ₹540 more on his deposit over 3 years. How much did he deposit?

Explanation

1. 01

   The extra ₹540 comes only from the extra 2% for 3 years.

2. 02

   $\frac{P \times 2 \times 3}{100} = 540$, so $P = \frac{540 \times 100}{6} = 9000$.

3. 03

   He deposited ₹9,000.