The difference between simple interest on a certain sum at the annual rate of 15 percent for 6 years and 7 years is Rs. 75. What is the sum?
Show answer & explanation
Correct answer: A
Explanation
Given:
Interest Rate = 15% per annum
Difference in Time = 7 − 6 = 1 year
Difference in Interest = ₹75
According to the formula:
Simple Interest = (Principal × Rate × Time) / 100
Interest for 1 year = 75
(Principal × 15 × 1) / 100 = 75
Principal × 15 / 100 = 75
Principal = 75 × 100 / 15 = 500
Principal = ₹500