Simple Interest – Find the principal from two amounts: A sum amounts to Rs 850 in 3 years and Rs 925 in 4 years at simple interest. Find the principal (original sum).

Difficulty: Easy

Correct Answer: Rs 625

Explanation:


Introduction / Context:
The per-year increase under SI equals the difference between consecutive-year amounts. Subtracting the appropriate multiple from an earlier amount reveals the principal.



Given Data / Assumptions:

  • A3 = Rs 850
  • A4 = Rs 925


Concept / Approach:
Annual SI = A4 - A3. Then P = A3 - 3 * (annual SI).



Step-by-Step Solution:

Annual SI = 925 - 850 = Rs 75P = 850 - 3 * 75 = 850 - 225 = Rs 625


Verification / Alternative check:

A4 check: 625 + 4 * 75 = 625 + 300 = 925


Why Other Options Are Wrong:

  • Rs 600 / 575 / 650: not consistent with both amounts.
  • Data inadequate: data is sufficient in SI.


Common Pitfalls:

  • Mistaking SI for compound interest.


Final Answer:
Rs 625.

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