Difference of S.I. on certain sum of money lent for 3 years and 5 year

1.	Difference of S.I. on certain sum of money lent for 3 years and 5 years is Rs. 980. If rate of interest is 7% p.a., find the sum of money lent? 1. Rs. 6,0002. Rs. 5,0003. Rs. 6,5004. Rs. 7,000
Answer» Correct Answer - Option 4 : Rs. 7,000 Given: Difference of S.I. on certain sum of money lent for 3 years and 5 years is Rs. 980. Rate of interest = 7% p.a. Concepts used: S.I. = P × R × T/100 Where, P → Principal R → Rate of interest per annum T → Time (in years) Calculation: S.I. = P × R × T/100 Where, P = Principal, R = rate of interest per annum, T = time (in years) S.I. for 3 years = P × 7 × (3/100) ⇒ 21P/100 S.I. for 5 years = P × 7 × (5/100) ⇒ 35P/100 The difference of S.I. on a certain sum of money lent for 3 years and 5 years is Rs. 980. (35P/100) – (21P/100) = Rs. 980 ⇒ 14P/100 = Rs. 980 ⇒ P = Rs. 980 × (100/14) ⇒ P = Rs. 7,000. ∴ The sum of money lent is equal to Rs. 7,000.

Difference of S.I. on certain sum of money lent for 3 years and 5 years is Rs. 980. If rate of interest is 7% p.a., find the sum of money lent? 1. Rs. 6,0002. Rs. 5,0003. Rs. 6,5004. Rs. 7,000

Answer» Correct Answer - Option 4 : Rs. 7,000

Given:

Difference of S.I. on certain sum of money lent for 3 years and 5 years is Rs. 980.

Rate of interest = 7% p.a.

Concepts used:

S.I. = P × R × T/100

Where,

P → Principal

R → Rate of interest per annum

T → Time (in years)

Calculation:

S.I. = P × R × T/100

Where, P = Principal, R = rate of interest per annum, T = time (in years)

S.I. for 3 years = P × 7 × (3/100)

⇒ 21P/100

S.I. for 5 years = P × 7 × (5/100)

⇒ 35P/100

The difference of S.I. on a certain sum of money lent for 3 years and 5 years is Rs. 980.

(35P/100) – (21P/100) = Rs. 980

⇒ 14P/100 = Rs. 980

⇒ P = Rs. 980 × (100/14)

⇒ P = Rs. 7,000.

∴ The sum of money lent is equal to Rs. 7,000.

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