Question
For a fixed amount, the interest received after 5 years
at an annual rate of 12% on ordinary interest is Rs.6840. Find the amount invested (in Rs.).Solution
We can use the formula for finding the simple interest to find the principal amount: I = (PRT)/100 6840 = (P x 12 x 5)/100 6840 = (P x 60)/100 6840 x 100 = P x 60 684000 = P x 60 P = 684000/60 P = 11400
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