A certain sum becomes ₹2,356 in 3 years and ₹2,660 in 5 years on simple interest. The value of sum is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹1,900
Simple interest is the same every year, so the growth of the amount between year 3 and year 5 is two years’ interest. Once the interest for one year is known, the sum is the amount after 3 years less 3 years’ interest.
Interest for 2 years \(=2660-2356=304\)
Interest for 1 year \(=304\div2=152\)
Interest for 3 years \(=3\times152=456\)
Sum \(=2356-456=\) ₹1,900