A sum of money at simple interest amounts to Rs. 6000 in 4 years and to Rs. 6750 in 7 years at the same rate per cent p.a. of interest. The sum (in Rs.) is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 5000.
The sum of money becomes 6000 in 4 years and 6750 in 7 years.
Interest earned in 3 years = 6750 - 6000 = 750
1 year interest = 750/3 = 250.
4 year interest = 250 × 4 = 1000
Principal = 6000 - 1000 = 5000.