Question
A person 'A' invested a sum at an
annual simple interest rate of 15% for 2 years. If the rate of interest is raised by 5%, the simple interest increases by ₹540. Determine the principal amount invested by 'A'.Solution
ATQ, Let the principal of person 'A' = 'a' a × (15 + 5) × (2/100) – a × 15 × (2/100) = 540 a × (4/10) – a × (3/10) = 540 a/10 = 540 a = 5400 The principal of person 'A' = Rs.5400
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