What sum of money will amount to 520 in 5 years and to 568

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What sum of money will amount to 520 in 5 years and to 568 in 7 years at simple interest ?

1. 400
2. 120
3. 510
4. 220

Correct Option: A

Given that , A₁ = ₹ 520 , A₂ = ₹ 568 , T₁ = 5 years , T₂ = 7 years
Simple interest for 2 years = ₹(568 – 520) = ₹ 48

∴ Interest for 5 years = ₹	48	× 5 = ₹ 120
	2

Principal = Amount - Simple Interest = (520 – 120) = 400
Second method to solve this question :
Here , A₂ = ₹ 568 , T₁ = 5 years , A₁ = ₹ 520 , T₂ = 7 years

P =		A₂T₁ - A₁T₂
		T₁2

P =		568 × 5 - 520 × 7
		5 - 7

P =		2840 - 3640
		- 2

P = (- 800 ) ÷ ( -2 ) = ₹ 400