2021 · Q62
A sum of money was invested at simple interest at a certain rate for 5 years. Had it been invested at a 5% higher rate, it would have fetched Rs.500 more. What was the principal amount?
Elementary MathematicsSimple and Compound Interest
- ARs.2,000
- BRs.1,800
- CRs.1,600
- DRs.1,200
Explanation
The extra interest equals P × 5% × 5 years = 0.25P. Given this is Rs. 500, P = 500/0.25 = Rs. 2,000. Hence option A.