Question

A sum of money at simple interest amounts to Rs. 850 in 4 years and Rs. 800 in 3 years. The sum is:

1. Rs. 650
2. Rs. 750
3. Rs. 720
4. Rs. 800

Answer 1

Correct Answer - Option 1 : Rs. 650

Given:

Amount in 3 years = Rs. 800

Amount in 4 years = Rs. 850

Concept used:

In case of simple interest, the sum increases with a fixed proportion.

Calculation:

Interest of 1 year = 850 - 800

⇒ Interest of 1 year = Rs. 50

⇒ Interest of 3 years = Rs. 150

According to the question,

Principal = 800 - 150

⇒ Principal = Rs. 650

∴ The principal is Rs. 650.