On a certain sum, simple interest for 5/2 years at an annual rate of 12% is Rs. 50 less than the interest on the same sum for 7/2 years at an annual rate of 10%. Find the sum.
- AOption (a)
Rs. 1500
- BOption (b)
Rs. 1000
- COption (c)
Rs. 1200
- DOption (d)
Rs. 2000
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Correct answer
Rs. 1000
Why this answer is correct
Shortcut Trick
Calculate the effective interest percentage for both scenarios.
Interest 1 = 12% × 2.5 years = 30%
Interest 2 = 10% × 3.5 years = 35%
Difference in interest percentage = 35% − 30% = 5%
Since 5% corresponds to ₹50, then 100% (Sum) = (50 ÷ 5) × 100 = ₹1000.
∴ The correct answer is ₹1000.
Alternate Method
Given: Rate1 = 12%, Time1 = 5/2 = 2.5 years; Rate2 = 10%, Time2 = 7/2 = 3.5 years; Difference = ₹50.
Formula Used: Simple Interest (SI) = (Principal × Rate × Time) ÷ 100
⇒ Let the Sum (Principal) be P.
⇒ SI1 = (P × 12 × 2.5) ÷ 100 = 30P ÷ 100 = 0.30P
⇒ SI2 = (P × 10 × 3.5) ÷ 100 = 35P ÷ 100 = 0.35P
⇒ According to the question: SI2 − SI1 = 50
⇒ 0.35P − 0.30P = 50
⇒ 0.05P = 50
⇒ P = 50 ÷ 0.05
⇒ P = 5000 ÷ 5 = 1000
∴ The correct answer is ₹1000.
Additional Information
Simple Interest Concept
Simple Interest is calculated only on the Principal amount. The interest remains constant for every year if the rate and principal are unchanged.
Relationship with Rate and Time
Interest is directly proportional to both Rate and Time. If the Rate increases by R% or Time increases by T years, the interest increases linearly.
Amount Formula
Total Amount (A) = Principal (P) + Simple Interest (SI). In terms of percentage, Amount % = 100% + (R × T)%.

























