Simple interest is paid annually on a sum of money invested for five years and the maturity amount after the 5-year period ends is ₹2,340. However, if the sum had been invested for 2 years, the maturity amount payable would be ₹2016. What was the principal amount invested?
₹1800/-
₹1800/- is correct.
Under simple interest the interest is the same every year, so the amounts after 5 years and after 2 years differ by 3 years of interest.
Interest for 3 years \(= 2340 - 2016 = 324\), so interest for 1 year \(= \dfrac{324}{3} = 108\).
Interest for 2 years \(= 2 \times 108 = 216\).
Principal \(= 2016 - 216 = 1800\), so ₹1800 was invested.
Similar Questions
- An amount becomes eight-fifth of the original amount in 5 years at what percentage rate of simple interest per annum?
- The rate at which a sum becomes 2 times of itself in 10 years at simple interest is:
- How many years will it take for an amount of ₹400 to yield ₹450 as interest at 5% per annum on simple interest?
- Vikas took a loan of ₹1,200 on simple interest that is equal to as many years as the rate of interest. If he paid ₹768 as interest at the end of the loan period, then what was the rate of interest?
- A sum of money amounts to ₹12,000 after 6 years and ₹15,000 after 9 years at the same rate of simple interest. What is the rate of interest per annum?
- What will be the amount of simple interest on ₹75,000 at the rate of $2\frac{5}{3}\%$ per annum for a period of 5 years?
- A sum of money, invested for 8 years on 5% per annum simple interest, amounted to ₹175 on maturity.
What was the sum invested? - If the simple interest for 7 years is equal to 56% of the principal, it will be equal to the principal after:
- A woman borrowed some money on simple interest. After 4 years she returned $\frac{6}{5}$ of money to the lender. What was the rate of interest?
- A certain sum of money amounts to ₹2,613 in 6 years at 5% simple interest per annum. In how many years will it amount to ₹3,015 at the same rate?
Important Questions from Simple Interest
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
P borrowed an amount from Q at a simple interest of 10% p.a. At the end of the year, P paid back Rs 99000 which was 90% of what she owed. How much money did P borrow?
An amount becomes Rs. 3795 in 3 years and Rs. 4537.50 in \(7 \frac{1}{2}\) years on simple interest. Find the rate of interest per annum.
