₹50,000 is deposited in a bank account. There was already some money in the account. Now the bank gives ₹7,500 as simple interest in a year. The rate of simple interest is 4.5% per annum. How much money (in ₹) was already there in the account?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 1,16,666.67.
Simple Interest (SI) = Principal (P) × Rate (R) × Time (T) / 100
Let the initial amount in the account be ₹X.
Total Principal (P) = X + 50,000
SI = (X + 50,000) × 4.5 × 1 / 100
7,500 = (X + 50,000) × 4.5 / 100
⇒ 750,000 = 4.5X + 225,000
⇒ 750,000 - 225,000 = 4.5X
⇒ 525,000 = 4.5X
⇒ X = 525,000 / 4.5
⇒ X = 116,666.67