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      Question

      A sum of money becomes Rs. 6500 in 3 years at 10% simple

      interest per annum. Find the principal and the interest earned.
      A Rs.2000 and Rs.1000 Correct Answer Incorrect Answer
      B Rs.5720 and Rs.1100 Correct Answer Incorrect Answer
      C Rs.5700 and Rs.1300 Correct Answer Incorrect Answer
      D Rs.5000 and Rs.1500 Correct Answer Incorrect Answer

      Solution

      Amount A = P(1 + rt/100) 6500 = P(1 + 10ร—3/100) = P(1 + 0.30) = 1.30P P = 6500 / 1.30 = 5000 Simple interest = A โˆ’ P = 6500 โˆ’ 5000 = 1500 Answer: Principal = Rs. 5000, Interest = Rs. 1500

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