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Start learning 50% faster. Sign in nowThe formula for simple interest is: SI = (P × R × T) / 100, Where SI is the simple interest, P is the principal, R is the rate of interest, and T is the time in years. We are given the interest (₹20,000), rate (10%), and time (4 years). So, we have: 20,000 = (P × 10 × 4) / 100, 20,000 = (40P) / 100, 40P = 20,000 × 100, P = (20,000 × 100) / 40 = ₹50,000. The principal amount is ₹50,000.
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