a) Rs. 500
b) Rs. 600
c) Rs. 700
d) Rs. 710
Answer: b
Explanation:
$$\eqalign{
& {\text{S}}{\text{.I}}{\text{. for 5 years}} \cr
& = {\text{Rs}}{\text{.}}\left( {1020 – 720} \right) \cr
& = {\text{Rs}}{\text{. 300}} \cr
& {\text{S}}{\text{.I}}{\text{. for 2 years}} \cr
& = {\text{Rs}}{\text{.}}\left( {\frac{{300}}{5} \times 2} \right) \cr
& = {\text{Rs}}{\text{. }}120 \cr
& {\text{Principal}} \cr
& = {\text{Rs}}{\text{.}}\left( {{\text{720}} – 120} \right) \cr
& = {\text{Rs}}{\text{. }}600 \cr} $$
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