A Co-operative Bank gives H.B. loans under the condition

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A Co-operative Bank gives H.B. loans under the condition that if the loan be cleared with interest in five years, the rate of simple interest per year is 5%, otherwise it will be 7%. Mr. Rahim and Mr. Ram take the same amount of H.B. loan and clear the loan with interest in 5 and 8 years respectively. If Ram pays Rs. 62,000 more, what is the amount of loan taken by each of them ?

Let amount of loan per head be Rs. p.
As we know that ,

SI =	Principal × Time × Rate
	100

∴	p × 7 × 8	-	p × 5 × 5	= 62000
	100		100

⇒	56p	-	25p	= 62000
	100		100

⇒ 21p = 6200000
⇒ p = Rs. 200000