Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

The difference between the simple interest on a fixed amount for 7 years and on the same amount for 12 years is ₹2,500. If the rate of interest is 10% p.a., then the amount is:

Options:

₹6,000

₹5,000

₹4,500

₹5,500

Correct Answer:

₹5,000

Explanation:

Simple interest of ( 12 - 7 )years = 2500

Simple interest of 1 year = \(\frac{2500 }{5 }\) = 500

We know ,

Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)

500 = \(\frac{Principal × 10 × 1 }{100}\)

Principal = Rs. 5000