Multiple choice

Two equal sums of money were invested, one at $4\%$ and the other at $\displaystyle 4\frac{1}{2}$%. At the end of $7$ years, the simple interest received from the latter exceeded that received from the former by Rs. $31.50$ Each sum was

  1. Rs. $1000$
  2. Rs. $500$
  3. Rs. $750$
  4. Rs $900$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Let sum be P. Interest 1 = P * 0.04 * 7 = 0.28P. Interest 2 = P * 0.045 * 7 = 0.315P. Difference = 0.035P = 31.50. P = 31.50 / 0.035 = 900.

AI explanation

Let each equal sum of money be Rs P. The difference in interest rates is 4.5% - 4% = 0.5%, which over 7 years at simple interest yields a difference of Rs 31.50. Using the simple interest formula, the equation is (P * 0.5 * 7) / 100 = 31.50. Solving this gives 3.5P = 3150, so P = 900. Each sum was Rs 900.

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