Multiple choice

A person lent a certain sum of money at $4\%$ simple interest and in $5$ years, the interest amounted to Rs. $520$ less than the sum lent. The sum lent was

  1. Rs. $.600$
  2. Rs. $650$
  3. Rs. $700$
  4. Rs. $750$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = (P * R * T) / 100. Given I = P - 520, R = 4, T = 5. So, P - 520 = (P * 4 * 5) / 100 = P / 5. P - P/5 = 520, 4P/5 = 520, P = 650.

AI explanation

Using the formula for simple interest, the interest after 5 years is (Principal times 4 times 5) divided by 100, which simplifies to 0.2 times Principal. The problem states that this interest is Rs. 520 less than the sum lent, so 0.2 times Principal equals Principal minus 520. Solving 0.8 times Principal equals 520 gives the principal sum of Rs. 650.

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