Question

A sum of money lent out at simple interest amount to USD 720 after 2 years and to USD 1020 after a further period of 5 years. the sum is

Answer 1

Answer:

USD 600

Step-by-step explanation:

let x = the original sum and y = the interest percentage,

yx = amount added to x every year due to interest

x + 2yx = 720

x + 7yx = 1020

therefore, 5yx = 300

yx = 60

substitute back into the first equation

x + 2(60) = 720

x = 600