A certain sum of money amounts to Rs. 2,500 in a span of 5 years and further…
2023
A certain sum of money amounts to Rs. 2,500 in a span of 5 years and further to Rs. 3,000 in a span of 7 years at simple interest. The sum is:
Answer: B. 1250 — Step-by-Step SolutionTo find the principal sum, we use the fact that in simple interest, the interest earned each year is constant. Calculate the interest…
- A.
1200
- B.
1250
- C.
1349
- D.
1245
Attempted by 3 students.
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Correct answer: B
Step-by-Step Solution
To find the principal sum, we use the fact that in simple interest, the interest earned each year is constant.
Calculate the interest over the two-year period:
Amount after 7 years = Rs. 3,000
Amount after 5 years = Rs. 2,500
The difference represents the simple interest earned over 2 years (7 - 5 = 2 years).
Interest for 2 years = 3000 - 2500 = Rs. 500.
Calculate the interest for 1 year:
Interest for 1 year = 500 / 2 = Rs. 250.
Find the principal:
Interest for 5 years = 250 * 5 = Rs. 1,250.
Since Amount = Principal + Interest, then Principal = Amount after 5 years - Interest for 5 years.
Principal = 2500 - 1250 = Rs. 1,250.