# Find The Principal ? If

A sum of money lent out at simple interest amounts to Rs.720 after 2 years and Rs.1020 after a further period of 5 years. Find the principal

- Rs. 1740
- Rs.120
- Rs.6000
- Rs.600

**Answer: (4) Rs. 600**

**Explanation:-**

The amount of money after two years = Rs. 720

The amount of money after seven years = Rs. 1020

The simple Interest of five years = 1020 – 720

= Rs. 300

Then, the simple interest for one year = 300/5

= Rs.60

Therefore, the simple interest for two years = 2 x 60

= Rs. 120

Then, Principal = 720 – 120

= Rs. 600

Hence, the answer is (4) Rs.600.