Multiple choice

The difference between amounts of simple interest earned at 10% per annum and 15% per annum on a certain amount for one year is Rs. 3500. The principal amount is

  1. Rs. 70,000

  2. Rs. 60,000

  3. Rs. 50,000

  4. Rs. 40,000

  5. Rs. 80,000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let P be the principal. (P * 0.15 * 1) - (P * 0.10 * 1) = 3500. 0.05P = 3500. P = 3500 / 0.05 = 70000.

AI explanation

For a one-year period, the difference in simple interest earned at two different rates is calculated on the principal itself. The interest difference is 15% minus 10%, which equals 5% of the principal. Since 5% of the principal equals Rs. 3500, the principal is 3500 divided by 0.05, yielding Rs. 70,000. The correct answer is Rs. 70,000.

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