A certain sum of money is given at a certain rate of simple interest for 6 years. Had it been given at 7% higher rate, it would have fetched ₹1,512 more. Find the sum (in ₹).

Question

Accepted Answer

Let the principal be P and the original rate of interest be R% per annum.

Simple Interest (SI) for 6 years at rate R% = (P × R × 6) / 100

If the rate is increased by 7%, the new rate = (R + 7)%

Simple Interest for 6 years at (R + 7)% = (P × (R + 7) × 6) / 100

According to the problem, the difference in interest = ₹1,512

So, (P × (R + 7) × 6) / 100 - (P × R × 6) / 100 = 1512

Simplify:
(P × 6 / 100) × ((R + 7) - R) = 1512

(P × 6 / 100) × 7 = 1512

(42P) / 100 = 1512

42P = 1512 × 100

42P = 151200

P = 151200 / 42

P = 3600

Therefore, the sum is ₹3,600.

Answer

Answer

Answer