Answer: A
Let the principal be \(x\) rupees. \(\therefore\) Interest = \(x \times \cfrac{40}{100}\) rupees = \(\cfrac{2x}{5}\) rupees. \(\therefore x + \cfrac{2x}{5} = 700\) i.e., \(\cfrac{7x}{5} = 700\) i.e., \(x = 700 \times \cfrac{5}{7} = 500\) \(\therefore\) The principal amount is ₹500.
Let the principal be \(x\) rupees. \(\therefore\) Interest = \(x \times \cfrac{40}{100}\) rupees = \(\cfrac{2x}{5}\) rupees. \(\therefore x + \cfrac{2x}{5} = 700\) i.e., \(\cfrac{7x}{5} = 700\) i.e., \(x = 700 \times \cfrac{5}{7} = 500\) \(\therefore\) The principal amount is ₹500.