If the simple interest on a certain sum of money for 4 years at the rate of 10% p.a. is Rs.7500 less than its principal then find simple interest (in Rs.).
Answer & explanation
Correct answer: option 3
\(\frac{P\;×\;10\;×\;4}{100}\) = P - 7500
⇒ \(\frac{3P}{5}\) = 7500
⇒ P = 12,500
⇒ Simple Interest = 12,500 - 7500= 5000