Question
₹4,300 becomes ₹4,644 in 2 years at simple interest.
Find the principle amount that will become ₹10,104 in 5 years at the same rate of interest.Solution
Interest = 4644 - 4300 = 344 p = 4300 T = 2 years Simple interest = P × R × T / 100 344 = 4300 × R × 2 / 100 r = 4% Let the principle amount be x. So, interest = 10104 – x T = 5 years r = 4% Simple interest = P × R × T / 100 10104 – x = x × 4 × 5 / 100 10104 × 5 – 5x = x 6x = 50520 X = 8420 The principle amount is Rs. 8420.
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