Question

At simple interest, a sum amounts to Rs 672 in 2 years and amount to Rs 762 in 4.5 years. Find the sum.
1. Rs.600
2. Rs 450
3. Rs.560
4. Rs.670

Answer 1

Correct Answer - Option 1 : Rs.600

Given

Amount in 2 years = Rs.672

Amount in 4.5 years = Rs 762

Concept

Amount = Principal + simple interest

Calculations

672 = principal + simple interest for 2 years     ---- (1)

762 = Principal + simple interest for 4.5 years   ---- (2)

From (1) and (2)

672 - simple interest for 2 years = 762 - simple interest for 4.5 years

Simple interest for 2.5 years = 762 - 672

= Rs.90

Simple interest for 1 year = 90/2.5

= 36

Simple interest for 2 years = 72

Principal = 672 - 72

= Rs 600