Multiple choice

What sum of money will amount to Rs. 575 in 3 years and to Rs. 625 in 5 years at simple interest?

  1. Rs. 520

  2. Rs. 480

  3. Rs. 500

  4. Rs. 450
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Difference between amounts in 5 years and 3 years = interest for 2 years = 625 - 575 = Rs. 50. Annual interest = Rs. 25. Interest for 3 years = Rs. 75. Principal = Amount - Interest = 575 - 75 = Rs. 500.

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