Question
What sum of money must be given at simple interest for 5
months at 4% per annum in order to earn Rs. 200 interest?Solution
Let the sum of money be Rs. P. SI = Rs. 200, T = 5/12 year and R = 4% SI = (P × R × T)/100 ⇒ 200 = P × (4/100) × (5/12) ⇒ P = Rs. 12000
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