Question
A sum of money becomes Rs. 6500 in 3 years at 10% simple
interest per annum. Find the principal and the interest earned.Solution
Amount A = P(1 + rt/100) 6500 = P(1 + 10×3/100) = P(1 + 0.30) = 1.30P P = 6500 / 1.30 = 5000 Simple interest = A − P = 6500 − 5000 = 1500 Answer: Principal = Rs. 5000, Interest = Rs. 1500
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