WBCS.LIVE practice question

A sum lent on simple interest becomes Rs.2520/- in 2 years and Rs.2700/- in 5 years. The principal sum is

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Rs. 2400/-
  2. Rs. 2000/-
  3. Rs. 2500/-
  4. Rs. 2600/-

Correct answer and explanation

Correct answer: Rs. 2400/-

Explanation: āœ… Correct Answer: A. Rs. 2400/- šŸ“š Explanation: The interest for 3 years (5 minus 2) is Rs. 2,700 - Rs. 2,520 = Rs. 180. This means the simple interest per year is Rs. 180 / 3, which equals Rs. 60. The interest for 2 years is 60 * 2 = Rs. 120. Subtracting this from the 2-year amount (2520 - 120) gives a principal sum of exactly Rs. 2,400.