The simple interest on a certain sum of money at 5% per annum for 4 years and 3 years differs by Rs. 42. What is the sum?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 840
Simple interest is the same amount every year, so the interest for 4 years and for 3 years differs by the interest of just one year.
Interest for one year at 5% \(\displaystyle =\frac{P\times5\times1}{100}=\) Rs. 42
\(\displaystyle P=\frac{42\times100}{5}=\) Rs. 840