Question

A sum of money at simple interest amounts to Rs. 820 in 3 years and to Rs. 860 in 4 years. The sum is:
1. Rs. 650
2. Rs. 690
3. Rs. 698
4. Rs. 700
5. None of these

Answer 1

Correct Answer - Option 4 : Rs. 700

Given,

A sum of money at simple interest amounts to Rs. 820 in 3 years and to Rs. 860 in 4 years

Formula used: 

S.I. = PTR ÷ 100

Calculations:  

⇒ S.I. for 1 year =  Rs. (860 - 820) = Rs. 40.

⇒ S.I. for 3 years = Rs. (40 × 3) = Rs. 120.

⇒ Principal = (820 - 120)

⇒ Principal = Rs. 700

∴ The required answer is Rs. 700