Multiple choice

A sum of money lent out at simple interest amounts to Rs.720 after 2 years and to Rs.1020 after a further period of 5 years. The sum is

  1. Rs.500

  2. Rs.600

  3. Rs.700

  4. Rs.710
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

After 2 years, amount = 720. After further 5 years (total 7 years), amount = 1020. So interest for 5 years = 1020 - 720 = 300. Interest per year = 60. Interest for 2 years = 120. Principal = Amount after 2 years - Interest for 2 years = 720 - 120 = 600. Option B is correct.

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