A person deposits two separate amounts in a bank at an interest rate of 10% per annum for 5 years. At the end of the term, they receive a difference of 2500 rupees in interest. What was the difference in principal amounts?

Q.A person deposits two separate amounts in a bank at an interest rate of 10% per annum for 5 years. At the end of the term, they receive a difference of 2500 rupees in interest. What was the difference in principal amounts? (a) ₹ 2000 (b) ₹ 5000 (c) ₹ 10000 (d) ₹ 4000

Answer: B

Let’s assume the difference in principal amounts \((p)= x\) rupees
Time \((t)= 5\) years
Rate of interest \((r)= 10\%\)
Difference in interest \((I)= 2500\) rupees

or, \(\cfrac{ptr}{100}=2500\)
or, \(\cfrac{x\times 5\times 10}{100}=2500\)
or, \(x=\cfrac{2500\times 100}{5\times 10}=5000\) rupees