A sum of money lent out at simple interest amounts to ₹ 720 after 2 years and to ₹ 1020 after a further period of 5 years. The sum is
(a)₹ 500
(b)₹ 600
(c)₹ 700
(d)₹ 710
Answer
Answer (as printed): B
Explanation
S.I. for 5 years $=₹(1020-720)=₹ 300$. S.I. for 2 years $=₹\left(\frac{300}{5} \times 2\right)=₹ 120$. $\therefore \quad$ Principal $=₹(720-120)=₹ 600$.
Explanation as extracted from the printed page; notation may be imperfect.