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    Question

    A sum of money was lent at simple interest for 5 years.

    If the rate had been 6% more, the interest would have been Rs. 900 higher. What was the amount lent?
    A Rs.3000 Correct Answer Incorrect Answer
    B Rs.1500 Correct Answer Incorrect Answer
    C Rs.1520 Correct Answer Incorrect Answer
    D Rs.1800 Correct Answer Incorrect Answer

    Solution

    Let initial rate of interest be r% per annum.
    Let the principal be Rs. P
    According to question;
    P × (r + 6)/100 × 5 – P × r/100 × 5 = 900
    Or, P(r + 6) – Pr = 900 × 100/5 = 18000
    Or, 6P = 18000
    So, P = 18000/6 = Rs. 3000

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