Multiple choice

Mayur lends a certain sum for 2 years at 20% rate of interest and gets Rs. 500 as interest. If Mayur's investment is the same as the interest Ram gets by investing a certain sum after 5 years at 10% interest, find the sum invested by Ram.

  1. Rs. 3,750

  2. Rs. 2,500

  3. Rs. 3,600

  4. Rs. 4,000

  5. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Mayur's interest is 500 for 2 years at 20% (SI), so his principal is 500 / (0.2 * 2) = 1250. Ram's interest is 1250 over 5 years at 10% (SI), so 1250 = P * 0.1 * 5, which means P = 1250 / 0.5 = 2500.

AI explanation

Assuming Mayur lends the sum at simple interest, we find his principal by using the simple interest formula rearranged to P = (S.I. x 100) / (R x T). Substituting the known values gives P = (500 x 100) / (20 x 2), which equals 1250. Ram's invested sum equals this 1250, and using the simple interest formula again for Ram gives 1250 = (Principal x 10 x 5) / 100. Solving this equation shows the sum invested by Ram is Rs. 2,500.

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