A sum is deposited in a bank which gives simple interest. The sum becomes 1.25 times in 3 years. If there is a requirement of ₹7,60,000 after seven years, how much amount (in ₹) should one deposit to fulfill the requirement?
Answer & explanation
Correct answer: option 3
Let Principal = Rs.100
Amount after 3 years = 100 × 1.25 = Rs.125
S.I in 3 years = 125 - 100 = Rs.25
S.I in one year = 25/3
SI in 7 years = 7 × \(\frac{25}{3}\) = \(\frac{175}{3}\)
Amount after 7 years = 100 + \(\frac{175}{3}\) = \(\frac{475}{3}\)
ATQ,
⇒ \(\frac{475}{3}\)R = 7,60,000
⇒ 1R = 7,60,000 × \(\frac{3}{475}\)
⇒ Principal = 100R = 7,60,000 × \(\frac{3}{475}\) × 100 = Rs.4,80,000/-