A sum of money invested at a certain rate of simple interest per annum amounts to 14,522 in seven years and to ₹18,906 in eleven years. Find the sum invested (in ₹).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 6850
Given that
In 7 years, Amount at S.I = ₹ 14,522
In 11 years, Amount at S.I. = ₹ 18,906
According to the question
In (11 - 7 = 4) years, Simple interest = 18906 - 14522 = ₹ 4384
S.I. for 1 year = 4384/4 = ₹ 1096
S.I. for 7 years = 1096 × 7 = ₹ 7672
As we know,
Principal = Amount - S.I.
Principal = 14522 - 7662 = ₹ 6850