Question

. What sum of money will amount to Rs. 620 in 5 years and to Rs. 668 in 7 years at simple interest?
1. Rs. 400
2. Rs. 500
3. Rs. 600
4. Rs. 550

Answer 1

Correct Answer - Option 2 : Rs. 500

Given:

Amount₁ = Rs.620

Amount₂ = Rs.668 

Time₁ = 5 years

Time₂ = 7 years

Formula Used:

Amount = Principal + Simple interest

Calculation:

⇒ 620 = P + 5I      -----(1)

⇒ 668 = P + 7I      -----(2)  

⇒ Solving equation (1) & (2)

⇒ P = 620 – (5 × 24) = Rs.500

∴ The sum of money is Rs. 500