When two equal amounts are deposited for 5 years and 3 years at the rate of 7% and 9% per annum respectively, and the difference of their simple interest is Rs 475. Then find the deposited amount.
Answer & explanation
Correct answer: option 1
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
Let sum = Rs. P
\(\frac{P × 7 × 5 }{100}\) - \(\frac{P ×3× 9 }{100}\) = 475
35P - 27P = 47500
8P = 47500
P = Rs.5937.5