Question

7. The markup on a principal amount is Rs. 820 for 6 months at the rate of
12.5% per annum. Calculate the principal amount.​

Answer 1

Formula of calculation:

We must remember the formula,

$P=\frac{100*I}{tr}$

where P = Principal amount, I = interest received, t = time of investment and r = the rate of interest.

Step-by-step explanation:

Here, I = Rs. 820,

t = 6 months = $\frac{1}{2}$ year,

r = 12.5% per annum.

Putting this values in the above formula, we get

P = Rs. $\frac{100*820}{1/2*12.5}$

= Rs. 13120

Answer:

The principal amount is Rs. 13120.