A some of money lent out at simple interest amount to Rs. 720 after 2 years and Rs. 1020 after a further period of 5 years. Find the principal ?

A. Rs. 6000

B. Rs. 600

C. Rs. 1740

D. Rs. 120

Answer: Option B

Solution(By Examveda Team)

According to the question,
Principal + SI for 2 year = Rs. 720 ......(i)
Principal + SI for 7 year = Rs. 1020 ......(ii)
Subtracting equation (i) from (ii)
⇒ SI for 5 years = (1020 - 720) = Rs. 300
⇒ SI for 1 years = Rs. 60
⇒ SI for 2 years = 60 × 2 = Rs. 120
⇒ Principal amount = (Amount after 2 years - 2 years SI) = (720 - 120)
⇒ Principal amount = Rs. 600