If simple interest on a certain sum of money at the rate of 7% per annum for 5 years is ₹ 2925 less than its principal, then find the interest.₹ 1575₹ 4500₹ 1260₹ 3950

The problem can be solved using the formula for simple interest, which is I = PRT/100, where I is the interest, P is the principal, R is the rate, and T is the time.

According to the problem, the simple interest is ₹2925 less than the principal. This can be written as P - I = ₹2925.

We also know that the rate is 7% per annum, the time is 5 years, and the interest is what we're trying to find.

Substituting the given values into the formula, we get:

I = P * 7 * 5 / 100

This simplifies to:

I = 0.35P

Since we know that P - I = ₹2925, we can substitute I = 0.35P into this equation to get:

P - 0.35P = ₹2925

This simplifies to:

0.65P = ₹2925

Solving for P, we get:

P = ₹2925 / 0.65 = ₹4500

Substituting P = ₹4500 into the equation I = 0.35P, we get:

I = 0.35 * ₹4500 = ₹1575

So, the interest is ₹1575.