When two equal amounts are deposited for 5 years and 3 years at the rate of 7% and 9% per annum respectively, and the difference of their simple interest is Rs.475. Then find the deposited amount.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e Rs.5,937.5
| Understanding | Application |
| Simple interest = (principal × rate of interest × number of years) / 100 |
Let P be the deposited amount, (P × 7 × 5) / 100 - (P × 9 × 3) / 100 = 475 ⇒ 0.35P - 0.27P = 475 ⇒ 0.08P = 475 ⇒P = 475 / 0.08 ⇒ P = Rs.5937.5 |