A sum becomes ₹500 in 5 years and ₹600 in 7 years at a certain rate percent p.a at of simple interest. What is the sum?
Answer & explanation
Correct answer: option 4
Simple Interest of 2 years = 600 - 500 = 100
Simple interest of 1 year = 50
Simple interest of 5 years = 50 × 5 = 250
We know ,
Amount = Principal + Simple interest
500 = Principal + 250
Principal = Rs. 250