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:
Answer & explanation
Correct answer: option 2
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