Multiple choice

A sum becomes Rs. 1020 in 5 years and Rs. 1200 in 8 years at a certain rate of simple interest. What is the principal?

  1. Rs. 820

  2. Rs. 780

  3. Rs. 700

  4. Rs. 720

  5. Rs. 740
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest for 3 years (8 - 5) is 1200 - 1020 = 180. Interest for 1 year is 60. Interest for 5 years is 300. Principal = 1020 - 300 = 720.

AI explanation

The simple interest earned over the 3 years between year 5 and year 8 is Rs. 1200 minus Rs. 1020, which is Rs. 180. This means the yearly simple interest is Rs. 180 divided by 3, equaling Rs. 60. The total interest earned over the 5 years is Rs. 60 multiplied by 5, which is Rs. 300. Subtracting this interest from the 5-year amount gives the principal: Rs. 1020 minus Rs. 300 equals Rs. 720. The correct answer is Rs. 720.

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