The simple interest on a sum for five years at 7% per annum is ₹700. What is the principal amount?
Answer & explanation
Correct answer: option 3
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