Question 55

A sum of money, invested at a certain rate of simple interest per annum, amounts to ₹720 in 4 years and to ₹800 in 5 years. The sum invested is:

Solution

Amount after 4 years = ₹720 Eq.(i)

Amount after 5 years = ₹800 Eq.(ii)

Interest of 1 year = Eq.(ii)-Eq.(i)

= ₹800-₹720

= ₹80

So the interest of 4 years = $$4\times$$ ₹80 = ₹320 Eq.(iii)

Sum invested initially (principal money) = Eq.(i)-Eq.(iii)

= ₹720-₹320

= ₹400

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