The simple interest on a certain sum for 3 years at 14% p.a. is ₹4,200 less than the simple interest on the same sum for 5 years at the same rate. Find the sum.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. ₹15,000
Concept used:
Simple Interest, SI = (P x R x T)/100
Amount = P + SI
where,
P = Principal amount
R = Rate of interest per year
T = time in years
Calculation:
Let the principal amount be P.
According to the question,
(P × 14 × 5)/100 (P × 14 × 3)/100 = 4200
= (P × 14 × 2)/100 = 4200
⇒ P = 15000
So, The sum is 15,000.