Quantitative Aptitude · Ratio & Proportion
A sum of money becomes ₹12,000 in 2 years and ₹15,000 in 5 years at simple interest. What is the original principal?
Question
AA sum of money becomes ₹12,000 in 2 years and ₹15,000 in 5 years at simple interest.
What is the original principal?
Options
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Explanation
At simple interest, interest increases linearly with time.
Amount after 2 years:
P+2I=12000P + 2I = 12000P+2I=12000Amount after 5 years:
P+5I=15000P + 5I = 15000P+5I=15000Subtracting the first equation from the second:
(P+5I)−(P+2I)=15000−12000(P + 5I) - (P + 2I) = 15000 - 12000(P+5I)−(P+2I)=15000−12000 3I=30003I = 30003I=3000 I=1000I = 1000I=1000Substitute the value of I in the first equation:
P+2(1000)=12000P + 2(1000) = 12000P+2(1000)=12000 P=10000P = 10000P=10000