Question

Suman borrowed some money for 2 years at certain simple interest. But the interest rate was increased to 7% which amounted to Rs. 210. Find the principal amount.
1. Rs. 1100
2. Rs. 1000
3. Rs. 1500
4. Rs. 1400

Answer 1

Correct Answer - Option 3 : Rs. 1500

Given

Rate = 7%

Time = 2 years

Simple interest = Rs. 210

Formula used

Simple interest = (P × r × t)/100

Where p, r and t are principal, rate and time respectively

Calculation

210 = (P × 7 × 2)/100

⇒ P = (210 × 100)/(7 × 2)

⇒ P = Rs.1500

∴ Principal is Rs. 1500