Question
A sum of money grows to Rs. 4,900 in 4 years and Rs.
5,600 in 6 years under simple interest. What is the original principal amount?Solution
ATQ,
Difference in interest over 2 years: 5,600 − 4,900 = 700
Annual interest: 700 / 2 = 350
Principal = 4,900 − (4 × 350) = 3,500
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