Question
A sum was lent at simple interest for 2.5 years. If the
rate had been 7.5% more, the interest would have been Rs. 375 extra. What was the amount lent?Solution
Let initial rate of interest be r% per annum.
Let the principal be Rs. P
According to question;
P × (r + 7.5)/100 × 2.5 – P × r/100 × 2.5 = 375
Or, P(r + 7.5) – Pr = 375 × 100/2.5 = 15000
Or, 7.5P = 15000
So, P = 15000/7.5 = Rs. 2000
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