Question
A sum of money becomes ₹7800 after 3 years and ₹8500
after 4 years at simple interest. What is the principal amount?Solution
Interest for 1 year = ₹8500 − ₹7800 = ₹700. For 3 years, the interest = 3 × ₹700 = ₹2,100. Principal = ₹7800 − ₹2,100 = ₹5,700. Thus, the correct answer is ₹5,700 . Ans. c
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