Multiple choice

What amount will become Rs. 1300 in 4 years and Rs. 1525 in 7 years on simple interest?

  1. Rs. 1000

  2. Rs. 1050

  3. Rs. 1075

  4. Rs. 1100
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A Correct answer
Explanation

The difference in interest over 3 years (7 - 4) is 1525 - 1300 = 225. Simple interest per year is 225 / 3 = 75. In 4 years, the interest is 4 * 75 = 300. The principal is 1300 - 300 = 1000.

AI explanation

The difference in amounts for 7 and 4 years represents the simple interest for 3 years, so 1525 minus 1300 equals 225. This means the simple interest for 1 year is 75. The interest for 4 years is 300, and subtracting this from the 4-year amount gives the principal: 1300 minus 300 equals 1000. The result is Rs. 1000.

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