Person A invested Rs. x for 5 years at the rate of interest 14% per annum and she obtained an interest of Rs. 1540. Find the difference between the principal amount and interest earned by him.

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  1. Rs. 750
  2. Rs. 780
  3. Rs. 660
  4. Rs. 720
  5. Rs. 620

Answer (Detailed Solution Below)

Option 3 : Rs. 660
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Solution:

Principal amount invested = Rs.x

Number of years = 5

Rate of interest = 14%

Simple interest = Rs. 1540

To find the value of x

1540 = (x ×  5 ×  14)/100

(1540 ×  10)/7 = x

x = 2200

Required difference = 2200 - 1540 = Rs. 660

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