If simple interest on a certain principal amount at 5% per annum for 5 years is Rs. 900 more than the simple interest on the same principal amount for 4 years at 4% per annum, then find out the principal amount.

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UGC NET Paper 1: Held on 6th Mar 2023 Shift 1
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  1. Rs. 9,000
  2. Rs. 10,500
  3. Rs. 10,000
  4. Rs. 12,000

Answer (Detailed Solution Below)

Option 3 : Rs. 10,000
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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50 Questions 100 Marks 60 Mins

Detailed Solution

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Formula used:

Simple Interest = (Principal × Rate × Time)/100

Calculation:

Simple Interest for 5 years at 5% = (P × 5 × 5) / 100 =

25P/100

Simple Interest for 4 years at 4% = (P × 4 × 4)/100 = 16P/100

25P/100 - 16P/100 = 900

⇒ 9P/100 = 900

⇒ 9P = 90000

⇒ P = 10000

Therefore, the principal amount is Rs. 10,000.

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