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    Question

    A person lent a sum at simple interest for 6 years. If

    the rate had been 5% more, he would have earned Rs. 750 extra. What was the principal?
    A Rs.3000 Correct Answer Incorrect Answer
    B Rs.2500 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 + 5)/100 × 6 – P × r/100 × 6 = 750
    Or, P(r + 5) – Pr = 750 × 100/6 = 12500
    Or, 5P = 12500
    So, P = 12500/5 = Rs. 2500

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