The simple interest on a certain sum for 3 years at 14% p.a. is ₹ 4,200 less than the simple interest on the same sum for 5 years at the same rate. Find the sum.
Answer & explanation
Correct answer: option 3
If Principal= 100%
then Total Interest(I) = Rate(R) × Time(T)
I1=14% × 3 = 42%
I2=14% × 5 = 70%
I2 - I1 = 70% - 42% = 28%
ATQ,
28% = 4200
1% = 150
100% = 15000
∴ Principal = Rs.15000