Question
A sum of money is invested at 8% simple interest per
annum. If the interest earned after 4 years is ₹3200, what is the principal amount?Solution
Using the formula for simple interest, Interest = (P × R × T) / 100 Where P = Principal, R = Rate, T = Time, and Interest = ₹3200 Substitute the given values: 3200 = (P × 8 × 4) / 100 3200 = (32P) / 100 3200 × 100 = 32P 320000 = 32P P = 320000 / 32 = ₹10,000 Correct Option: d) ₹10,000
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