Question

A man deposited a sum of money in a bank at the rate of 6 % per annum for 4years.
If he received an interest of Rs 1,440, how much money did he deposit in the bank?


....

Answer 1

Answer:

Given rate of interest = 6% p.a. (per annum)

Given time period = 4 years

Given simple interest = Rs. 1,400

Principal amount = ?

We already know that simple interest = P x R x T/100. So, by substituting the values, we will get the value of the simple interest. (P = principal amount

R = rate of interest T = time period)

⇒ Simple interest = P x R x T/100

⇒ Rs. 1,400 = P x 6 x 4 / 100

⇒ Rs. 1,400 x 100 = P x 6 x 4

⇒ Rs. 1,40,000 = P x 6 x 4

⇒ Rs. 1,40,000 / 4 = P x 6

⇒ Rs. 35,000 = P x 6

⇒ Rs. 35,000 / 6 = P

⇒ Rs. 5,833.33 = P

∴ The man deposited (principal amount) = Rs. 5,833.33

Thnx and have a nice day!

✌