The simple interest on a sum for five ye

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

The simple interest on a sum for five years at 7% per annum is ₹700. What is the principal amount?

Options:

₹1800

₹1600

₹2000

₹2100

Correct Answer:

₹2000

Explanation:

Simple interest of 5 years = 5 × 7% = 35%

Let initial sum invested = 100%

ATQ,

35% = 700

1% = \(\frac{700 }{35 }\) = 20

Initial sum invested = 100% = 100 × 20 = Rs. 2000