Q.A certain amount of money amounts to ₹700 in 4 years at simple annual interest, and during this time the interest is 40% of the principal. What is the amount of the principal? (a) ₹ 500 (b) ₹ 400 (c) ₹ 600 (d) ₹ 300
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.
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