Question
An amount placed on simple interest at 7.5% per annum
for 3 years becomes Rs. 8,025. What was the principal?Solution
ATQ, Let the principal be Rs. 'P'. Simple interest = Principal × Rate × Time ÷ 100 So, P + P × 7.5 × 3 ÷ 100 = 8,025 Or, P + 0.225P = 8,025 Or, 1.225P = 8,025 Or, P = 6,550
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