Question

A finance company charges 55 simple interest on a sum of money which is borrowed for five months .given that the rate of interest is 12 % per annum , find the sum of money

Answer 1

Given :

The Simple Interest = I = Rs 55

The time period = t = 5 months

The rate of interest applied = r = 12% per annum

To Find :

The sum of money

Solution :

Let The Sum of money borrowed = Rs P

From Simple interest method

Simple Interest = $\dfrac{Principal\times Rate\times time}{100}$

Or,   I = $\dfrac{P\times r\times t}{100}$

Or , Rs 55 = $\dfrac{P\times 12\times 5}{12\times 100}$

Or, 55 = $\dfrac{P\times 5}{ 100}$

Or,  5 P = 5500

∴        P = $\dfrac{5500}{5}$

i.e Principal = P = Rs 1100

Hence, The sum of money borrowed is Rs 1100     Answer