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
Sum = Rs. 2356 in 3 years
Sum = Rs. 2660 in 5 years
We know that,
Simple Interest formula,
Interest = PRT/100,
where P is the principal, R is the rate of interest and T is time in years.
Difference in the sums gives the interest for 2 years (5 years - 3 years) = Rs. 304
The interest in 3 years will be = 304/2 × 3 = 456
P = 2356 - 456 = 1900