A sum of money at a simple rate of interest becomes Rs 2016 in 4 years and Rs 2286 in 5 years. What is the principal amount?

ARs 1800 ✓ Correct

BRs 1700

CRs 1900

DRs 1820

Correct answer: (A) Rs 1800

Explanation

The principal works out to Rs 936 from the simple interest amounts.

Interest for 1 year = 2286 - 2016 = Rs 270.

Interest for 4 years = 4 x 270 = Rs 1080.

Principal = amount in 4 years - 4 year interest = 2016 - 1080.

Principal = 2016 - 1080 = Rs 936.

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