A sum of money amounts to Rs. 850 in 3 years and Rs. 925 in 4 years. The sum is-

Options

A. Rs. 600
B. Rs. 575
C. Rs. 625
D. Data inadequate

Answer

To find the sum of money (principal amount) based on the information given, we can follow these steps:

### Step 1: Identify the amounts after 3 years and 4 years
- Amount after 3 years (A3) = Rs. 850
- Amount after 4 years (A4) = Rs. 925

**Hint:** Look for the amounts given for different time periods to set the stage for calculating interest.

### Step 2: Calculate the difference in amounts over the one year
- The difference between the amount after 4 years and the amount after 3 years gives us the interest for 1 year.
- Interest for 1 year (I) = A4 - A3 = 925 - 850 = Rs. 75

**Hint:** The difference in amounts over consecutive years represents the interest earned for that year.

### Step 3: Calculate the total interest for 3 years
- Total interest for 3 years (I_total) = Interest for 1 year × 3
- I_total = 75 × 3 = Rs. 225

**Hint:** Multiply the annual interest by the number of years to find the total interest accrued over that period.

### Step 4: Calculate the principal amount
- To find the principal amount (P), subtract the total interest for 3 years from the amount after 3 years.
- P = A3 - I_total = 850 - 225 = Rs. 625

**Hint:** The principal amount is the amount after a certain period minus the total interest accrued during that period.

### Conclusion
The sum of money (principal amount) is Rs. 625.

**Final Answer:** The sum is Rs. 625 (Option C).