Multiple choice

The simple interest on a certain sum for 3 years at 14% p.a. is ₹4,200 less than the simple interest on the same sum for 5 years at the same rate. Find the sum.

  1. ₹16,000

  2. ₹10,000

  3. ₹ 15,000

  4. ₹12,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The difference between simple interest for 5 years and 3 years at the same rate equals exactly 2 years' interest. At 14% p.a., 2 years' interest is 28% of the principal. Setting 0.28P = 4200 gives P = 4200/0.28 = 15000. The answer is Rs 15,000.

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