Simple interest on Rs. 986 for a certain period is Rs. 62 less than simple interest on Rs. 1,296 for the same period at the rate of 5% simple interest. For how many years was each sum of money invested?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 4.
Let, the investment time be T
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = Principal, R = Rate and, T = Time
⇒ 62 = (1296 × 5 × T)/100 - (986 × 5 × T)/100
⇒ 6200 = 6480T - 4930T
⇒ 6200 = 1550T
⇒ T = 4 years