Multiple choice

A sum of money at some rate of simple interest amounts to Rs. 2500 to 5 years to Rs. 3500 in 10 years. Find the principal and simple interest of 2 years if the rate of interest is double.

  1. 1500 & 800

  2. 2000 & 200

  3. 1000 & 100

  4. 1200 & 250
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let P be principal, R be rate. Amount after 5 years: P + 5PR = 2500. Amount after 10 years: P + 10PR = 3500. Subtracting: 5PR = 1000, so PR = 200. Substituting back: P + 1000 = 2500, P = 1500. If rate doubles (2R), simple interest for 2 years = 2P(2R) = 2 × 1500 × 2R = 6000R. Since PR = 200, R = 200/1500. So SI = 6000 × 200/1500 = 800. Principal = 1500, SI = 800.

Keep practicing — related questions