Question

6. What sum of money lent out at simple interest will become *3,700 in 4 years at 12% per year?​

Answer 1

In context of the questions asked,

We have to determine the value of principal.

As per Questions,

It is given that,

Amount = Rs. 3700

Rate = 12%

Time = 4 years

As we know that,

A = P + SI

So, let the principal be Rs. x

So, for determining the value of Simple Interest we will apply the formula,

As we know that,

$interest = \frac{prt}{100}$

So, amount will be,

A = P + SI

Thus we will get,

$Amount = P + \frac{P \times 12 \times 4}{100}$

3700 = P + 0.48 P

1.48 P = 3700

P = Rs. 2500

Hence, value of Principal will be Rs 2500