Question

A person lent a certain sum of money at $4\%$ simple interest and in $5$ years, the interest amounted to Rs. $520$ less than the sum lent. The sum lent was

• A. Rs. $.600$
• B. Rs. $650$
• C. Rs. $700$
• D. Rs. $750$

Answer 1

The correct option is B Rs. $650$

Let the sum lent be $Rs.x$

The interest in $5$ years $=\frac{x\times 4\times 5}{100}$

Given: $\frac{x\times 4\times 5}{100}=x-520$

$\Rightarrow \frac{x}{5}=x-520$

$\Rightarrow x-\frac{x}{5}=520$

$\Rightarrow \frac{4x}{5}=520$

$\Rightarrow 4x=520\times 5$

$\Rightarrow x=\frac{520\times 5}{4}$

$\Rightarrow x=$ Rs. $650$

Therefore, the sum lent is Rs. $650$