Question
A sum of money amounts to Rs. 5,320 in 4 years at simple
interest at 8% per annum. What is the principal?Solution
Let principal = P SI = (P × R × T) / 100 = (P × 8 × 4)/100 = 0.32P Amount = P + SI = P + 0.32P = 1.32P Given: 1.32P = 5,320 ⇒ P = 5,320 / 1.32 = 5320 × (100 / 132) = 532000 / 132 132 × 40 = 5,280; remainder 40 ⇒ approx 40.3 → check exact: Simplify 532000/132 = (5320/1.32) = 4,200 So P = Rs. 4,200
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