Question
A sum of money becomes ₹4600 after 3 years and ₹5400
after 5 years at simple interest. What is the principal amount?Solution
Let the principal be P and the rate of interest be R% per annum. Interest for 2 years (from 3rd to 5th year) = ₹5400 − ₹4600 = ₹800. Simple interest for 2 years = ₹800. So, interest for 1 year = ₹800 / 2 = ₹400. For 3 years, the interest = 3 × ₹400 = ₹1200. Principal = ₹4600 − ₹1200 = ₹3400. Thus, the principal amount is ₹3400 . Ans. a
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