📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    An amount becomes Rs. 11,520 after 3 years at a simple

    interest rate of r% p.a. If the rate had been increased to (r + 5)% per annum, the same sum would become Rs. 12,570 in 3 years. Calculate the original sum invested.
    A Rs.7000 Correct Answer Incorrect Answer
    B Rs.5720 Correct Answer Incorrect Answer
    C Rs.6620 Correct Answer Incorrect Answer
    D Rs.4700 Correct Answer Incorrect Answer

    Solution

    ATQ,

    Let the sum invested be Rs. ‘P’.

    Simple interest at r% = 11520 – P

    So, 11520 – P = P × 3 × r ÷ 100

    Or, 100 × (11520 – P) = 3Pr ………. (I)

    Simple interest at (r + 5)% = 12570 – P

    So, 12570 – P = P × (r + 5) × 3 ÷ 100

    Or, 100 × (12570 – P) = 3Pr + 15P ………. (II)

    From (I) and (II),

    1257000 – 100P = 1152000 – 85P

    Or, 105000 = 15P

    P = 7000

    Therefore, sum = Rs. 7,000

    Practice Next
    More Simple and compound interest Questions
    ask-question