Question

if the simple interest on a certain sum of money for 3 years at the rate of 12.5% is rupees 3500 less than its principal. find the sum and simple interest​

Answer 1

Solution:

Let the sum of money be P.

Then the simple interest on P for 3 years at 12.5% per annum is

= Rs. P * 3 * 12.5 / 100

= Rs. 37.5P/100

By the given condition,

37.5P/100 = P - 3500

or, P - 37.5P/100 = 3500

or, (100 - 37.5)P = 350000

or, 62.5P = 350000

or, P = 5600

Then simple interest = Rs. 37.5 * 5600 / 100

= Rs. 2100

Answer:

• Sum = Rs. 5600
• Interest = Rs. 2100