Question

A sum of money lent out at simple interest amounts Rs 720 after 2 years and to Rs 1020 after a further period of 5 years. What is the sum ?

• A. Rs 200
  
• B. Rs 350
  
• C. Rs 475
  
• D. Rs 600

Answer 1

The correct option is D Rs 600

$\Rightarrow$ S.I. for $2$ years $=$ Rs. $720$.

$\Rightarrow$ S.I. for $7$ years $=$ Rs. $1020$

$\therefore$ S.I. for $5$ years $=$ Rs. $1020-$ Rs. $720=$ Rs. $300$.

$\Rightarrow$ S.I. for $2$ years $=\frac{300}{5}\times 2=Rs.120$

$\Rightarrow$ $Principal=720-120=Rs.600$

$\therefore$ The sum is $Rs.600$.