A sum of money lent at simple interest amounts to 880 in

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A sum of money lent at simple interest amounts to 880 in 2 years and to 920 in 3 years. The sum of money (in rupees) is

1. 700
2. 760
3. 784
4. 800

Correct Option: D

If the principal be P and rate of interest be r% per annum, then
SI after 1 year = 920 – 880 = ₹ 40
∴ SI after 2 years = ₹ 80
∴ Amount = principle + SI
⇒ 880 = P + 80
⇒ P = (880 – 80) = 800
Second method to solve this question :
Here , A₂ = ₹ 920 , T₁ = 2 years , A₁ = ₹ 880 , T₂ = 3 years

P =		A₂T₁ - A₁T₂
		T₁ - T₂

P =		920 × 2 - 880 × 3
		2 - 3

P =		1840 - 2640
		- 1

P =	- 800
	- 1

Principle = 800