Question

The present sum of money amounts to Rs 800 in two years and to Rs 920 In three years, then the present sum of money is a. 420 b. 690 c. 560 d. none of the options

Answer 1

Step-by-step explanation:

Given: Principal=Rs.800,Amount=Rs.920,T=3years

Simple interest =920−800=120

∴ Rate % =

800×3

120×100

=5%

If rate % is increased by 5%, i.e., if rate % = 10%, then

SI=

100

800×3×10

=240

∴Amount=Rs.800+Rs.240=Rs.1,040

Answer 2

Simple Interest

(c) 560

Here I am taking that the sum is amount on the basis of Simple interest.

Let the sum of money be x.

As we know that , the formula of Simple Interest is

$S.I = \frac{P\times\ R \times\ T}{100}$

Where,

S.I is simple interest,

P is principal,

R is rate of interest,

T is the time period.

&

$A= P+S.I.$

Where A is the amount.

At the end of 2nd year money amounts to  = $Rs. \ 800$

At the end of 3rd year = $Rs. \ 920$

So, Interest gained in one year = $920-800= 120$

Therefore, in two years Rs. 240 was gained.

Hence, Present money = $800 - 240 = Rs. \ 560$

 Hence, present money  is 560. i.e. option(c).