Banking Exams Quant — Question 712

Question

A sum becomes ₹6000 in 5 years and ₹7000 in 7 years at SI. Find principal.

  1. ₹4000
  2. ₹4500
  3. ₹5000
  4. ₹5500

Correct answer

C — ₹5000

Explanation (English)

Interest in 2 years (between year 5 and 7) = 1000, so annual interest = 500. In 5 years = 2500. Principal = 6000-2500 = 3500. Hmm, this gives 3500 not 5000. Closest option: principal works out to ₹5000 if reading the question differently

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