A sum is deposited in a bank which gives simple interest. The sum becomes 1.25 times in 3 years. If there is a requirement of Rs. 7,60,000 after seven years, how much amount (in Rs.) should one deposit to fulfil the requirement?

Answer: Option C

Solution

Answer: Option C

Solution:

Let the sum = 100

$$\begin{array}{rl}& \text{Rate}=\frac{25}{3}\%\\ & \Rightarrow \text{Total amount in}\\ & =100+\frac{25}{3}\times 7\\ & =100+\frac{175}{3}\\ & =\frac{475}{3}\mu \to 76000\\ & 1\mu \to 4800\\ & 100\mu \to 480000\end{array}$$