Question

A sum of money amounts to Rs. 6500 in 3 years and Rs. 9000 in 8 years at the same rate of simple interest. Find the value of the principal.
1. Rs. 5000
2. Rs. 1000
3. Rs. 10000
4. Rs. 1500

Answer 1

Correct Answer - Option 1 : Rs. 5000

Given:

Amount after 3 years = Rs. 6500

Amount after 8 years = Rs. 9000

Concept used:

Principal = Amount - S.I

If Time = T₁ and Amount = A₁

Time = T₂ and Amount = A₂ 

Then Interest for (T₂ – T₁) years is (A₂ – A₁) 

Calculations:

S.I. for 5 years = 9000 – 6500 = Rs. 2500

SI for 1 years = 2500/5 = Rs. 500

S I for 3 years = 3 × 500 = Rs. 1500 

Principal = 6500 – 1500 = Rs. 5000

∴ The value of the principal is Rs. 5000