If the simple interest on a certain sum of money for 3 years at the rate of 12.5% p.a. is Rs.3500 less than its principal then find simple interest (in Rs.).
Answer & explanation
Correct answer: option 4
\(\frac{P\;×\;25\;×\;3}{2\;×\;100}\) = P - 3500
⇒ \(\frac{5P}{8}\) = 3500
⇒ P = 5600
⇒ Simple Interest = 5600 - 3500 = 2100