A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

Difficulty: Easy

Rs. 698
Rs. 700
Rs. 756
Rs. 780

Correct Answer: Rs. 698

Explanation:

Given

Amount after 3 years = Rs. 815
Amount after 4 years = Rs. 854

Idea: In simple interest the interest per year is constant. The increase from year 3 to year 4 equals the interest of one year.

1 year's interest = 854 − 815 = 39Interest in 3 years = 3 × 39 = 117Principal P = Amount after 3 years − interest for 3 yearsP = 815 − 117 = Rs. 698

Check
Interest in 4 years = 4 × 39 = 156; P = 854 − 156 = 698 ✓

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