Question

A certain sum of money amounts to Rs23400 in 3 years at 10% per annum simple interest.Find the amount of the same sum in 2 years and at 10% per annum.

Answer 1

The formula for simple interest is = (Principle X Rate of interest X time ) / 100

Also written as 

Amount = PRT/100

step 1 :

Find out the amount 1 , i.e. the given amount but principle amount is missing.

you have,

Amount = 23400

P= ?

R= 10 %

T=3 years

so, A= PRT/100

23400 = (x) ( 10 ) (3) /100

after cross multiplying your answer will be = 78,000.

The value of P is 78,000

step 3:

now calculate amount for other transaction, using this P.

A = ?

P= 78000

R=10

T=2

A= PRT /100

A= (78000) (10) (2) /100

your answer will be 15,600.