A sum of money lent out at simple interest amounts to Rs. 715 after 3 years and to Rs. 990 after a further period of 5 years. Find the sum.

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SSC GD Constable Previous Year Paper (Held on: 13th December 2021 Shift 2) 
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  1. Rs. 550
  2. Rs. 600
  3. Rs. 590
  4. Rs. 625

Answer (Detailed Solution Below)

Option 1 : Rs. 550
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Detailed Solution

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Given:

Amount after 3 years = Rs. 715

Amount after 8 years  = Rs. 990

Formula used:

A = P + SI

Where A = amount , P = Principle

And SI = Simple interest

Calculation:

Amount in 3 years = Rs. 715

Now it is given in the question, amount for the time of further 5 years i.e 

Total time = 5 years + 3 years = 8 years.

Amount in 8 years = Rs. 990

SI for 5 years = Amount after 8 years  - Amount after 3 years

⇒ SI for 5 years = 990 - 715 = 275

SI for 1 years = 275/5 = 55

SI for 3 years = 55 × 3 = Rs.165

P = Amount of 3 years - SI of 3 years

⇒ P = 715 - 165 = 550

∴  The sum is Rs. 550

Confusion Points It is given in the question that after further 5 years amount is calculated , so total time will be (5 +3) years = 8 years. not 5 years.

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