Question
A sum of money amounts to Rs. 6800 in 4 years at 9%
simple interest per annum. Find the principal and the interest earned.Solution
Amount A = P(1 + rt/100) 6800 = P(1 + 9×4/100) = P(1 + 36/100) = P × 1.36 P = 6800 / 1.36 = Rs. 5000 Simple interest = Amount − Principal = 6800 − 5000 = Rs. 1800 Answer: Principal = Rs. 5000, Interest = Rs. 1800
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