A sum of money lent out at simple interest amounts to Rs.

Home » Aptitude » Simple interest » Question

A sum of money lent out at simple interest amounts to Rs. 720 after 2 years and Rs. 1020 after a further period of 5 years. Find the principal.

1. Rs. 600
2. Rs. 1740
3. Rs. 6000
4. Rs. 120

Correct Option: A

As we know that ,
SI = Amount - Principle
S.I. for 5 years = Rs. (1020 – 720) = Rs. 300
∴ S.I. for 2 years =(300 ÷ 5) × 2 = Rs. 120
∴ Principal = Amount - SI
∴ Principal = Rs. (720 – 120) = Rs. 600