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A certain sum (in Rs.) is invested at si...

A certain sum (in Rs.) is invested at simple interest at x% p.a. for 5 years. Had it been invested at (x+ 5)% p.a., the simple interest would have been Rs.9,200 more than the earlier one.
What is the sum?

A

Rs.36,800

B

Rs.40,000

C

Rs.36,400

D

Rs.35,800

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we need to establish the relationship between the simple interest earned at two different rates over the same time period. ### Step 1: Define the variables Let: - \( P \) = Principal amount (the sum we want to find) - \( x \) = Rate of interest in percentage per annum ### Step 2: Calculate the simple interest for both rates The formula for simple interest is: \[ SI = \frac{P \times R \times T}{100} \] Where: - \( SI \) = Simple Interest - \( P \) = Principal - \( R \) = Rate of interest - \( T \) = Time in years For the first scenario (at \( x\% \)): \[ SI_1 = \frac{P \times x \times 5}{100} \] For the second scenario (at \( (x + 5)\% \)): \[ SI_2 = \frac{P \times (x + 5) \times 5}{100} \] ### Step 3: Set up the equation According to the problem, the difference in simple interest between the two scenarios is Rs. 9,200: \[ SI_2 - SI_1 = 9200 \] Substituting the expressions for \( SI_1 \) and \( SI_2 \): \[ \frac{P \times (x + 5) \times 5}{100} - \frac{P \times x \times 5}{100} = 9200 \] ### Step 4: Simplify the equation Factor out common terms: \[ \frac{P \times 5}{100} \left((x + 5) - x\right) = 9200 \] This simplifies to: \[ \frac{P \times 5}{100} \times 5 = 9200 \] ### Step 5: Further simplify This can be rewritten as: \[ \frac{P \times 25}{100} = 9200 \] ### Step 6: Solve for \( P \) Multiply both sides by 100: \[ P \times 25 = 920000 \] Now, divide both sides by 25: \[ P = \frac{920000}{25} = 36800 \] ### Conclusion The principal amount \( P \) is Rs. 36,800.
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