Shortcut Trick
Total Rate × Time = 5% × 8 = 40%.
Total Interest = 40% of X + 40% of (X + 50) = 1020.
40% of (2X + 50) = 1020 ⇒ 2X + 50 = 1020 ÷ 0.4 = 2550.
2X = 2500 ⇒ X = 1250.
∴ The correct answer is ₹1250.
Alternate Method
Given:
Principal 1 (P1) = ₹X, Principal 2 (P2) = ₹(X + 50)
Rate (R) = 5%, Time (T) = 8 years, Total Interest = ₹1020
Formula Used:
Simple Interest (SI) = (P × R × T) ÷ 100
Calculations:
⇒ SI1 + SI2 = 1020
⇒ [(X × 5 × 8) ÷ 100] + [((X + 50) × 5 × 8) ÷ 100] = 1020
⇒ [40X ÷ 100] + [40(X + 50) ÷ 100] = 1020
⇒ 0.4X + 0.4X + 20 = 1020
⇒ 0.8X = 1020 − 20
⇒ 0.8X = 1000
⇒ X = 1000 ÷ 0.8 = 1250
∴ The correct answer is ₹1250.
Additional Information
Simple Interest Properties
Simple interest remains constant every year as it is always calculated on the original Principal amount.
Effective Rate of Interest
The total interest percentage over a period is the product of Rate and Time (R × T%).
Amount Formula
Total Amount (A) = Principal (P) + Simple Interest (SI) = P[1 + (R × T)/100].