Discussion

Question:

A sum of money at simple interest amounts to Rs. 815 in 3 years and to Rs. 854 in 4 years. The sum is:

Explanation:

Let the initial sum be P.

Amount due after 3 years is Rs. 815 and after 4 years is Rs. 854.
⇒ Interest for 4^th year = 854 - 815 = 39

We know in SI, interest each year is same, hence interest for each year is Rs. 39.

Now, amount due after 3 years will equal to initial principal + 3 years' interst.
⇒ 815 = P + 3 × 39
⇒ P = 815 - 117 = 698

Hence, option (c).

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