A sum of money lent out at simple interest amounts to Rs.620 after 2 years and to Rs.1220 after a further period of 4 years. The sum is:
Principal + SI for 2 years = Rs. 620 ------ (i) Principal + SI for 6 years = Rs. 1220 ------ (ii) Subtracting equation (i) from (ii), we get => S.I. for 4 years = (1220 – 620) = Rs. 600 ∴ S.I. for 2 years = 600 × (2/4) = Rs. 300 ∴ Principal = (620 – 300) =Rs.320
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