Q.If 1200 rupees grows to 1584 rupees in 4 years with simple interest, then how much principal amount will grow to 2800 rupees in 5 years? (a) ₹ 2000 (b) ₹ 1800 (c) ₹ 2500 (d) ₹ 2100
Answer: A
Let’s assume the principal amount \((p)=1200\) rupees
Time \((t)= 4\) years
Total interest \((I)=(1584-1200)\) rupees = \(384\) rupees

\(\therefore\) Rate of interest \((r)=\cfrac{100\times I}{pt}\%\)
= \(\cfrac{100\times 384}{1200\times 4}\%\) = \(8\%\)

Now, assume in the second case, the principal amount \((p)=x\) rupees
Time \((t)=5\) years
Rate of interest \((r)=8 \%\)
∴ Interest \((I)=\cfrac{ptr}{100}\)
\(=\cfrac{x×5×8}{100}\) rupees \(=\cfrac{2x}{5}\) rupees

\(∴x+\cfrac{2x}{5}= 2800\)
or, \(\cfrac{7x}{5}=2800\)
or, \(x=\cfrac{2800×5}{7} \)
or, \(x=2000\)
\(\therefore\) The principal amount is 2000 rupees.
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