A sum of money lent out at simple interest amounts to 720 Rs. after 2 years and to 1020 Rs. after a further period of 5 years. The sum is :
A sum of money lent out at simple interest amounts to 720 Rs. after 2 years and to 1020 Rs. after a further period of 5 years. The sum is :
[A]500 Rs.
[B]600 Rs.
[C]700 Rs.
[D]710 Rs.
600 Rs.
Principal + SI for 2 years = 720 Rs. ……(I)
Principal + SI for 7 years = 1020 Rs. ……(II)
Subtracting equation (I) from (II),
S.I. for 5 years = (1020 – 720) = 300 Rs.
∴ S.I. for 2 years $latex = 300\times \frac{2}{5} = 120 Rs.&s=1$
∴ Principal = (720 – 120) = 600 Rs.
Hence option [B] is correct answer.