Question

Rahim invested a certain sum at 5% simple interest for 3 years. His friend Hiralal invested the same sum for 2 years at 7% simple interest. Rahim got Rs. 30 more interest than Hiralal. What was the amount invested by them?
1. Rs. 2,000.00
2. Rs. 3,000.00
3. Rs. 5,000.00
4. Rs. 7,000.00

Answer 1

Correct Answer - Option 2 : Rs. 3,000.00

Given:

R₁ = 5%

T₁ = 3 years

R₂ = 7%

T₂ = 2 years

Rahim got Rs. 30 more than Hiralal

Formula used:

SI = (P × R × T)/100

Calculation:

Let the Principal be x

Then,

According to the question

⇒ (x × 5 × 3)/100 – (x × 7 × 2)/100 = 30

⇒ 15x/100 – 14x/100 = 30

⇒ x/100 = 30

⇒ x = Rs. 3000

∴ The amount invested by them is Rs. 3,000