Question

A sum of money amounts to 855 in 7/2 years at the rate of 4% p.a.simple interest.find the sum.

Answer 1

Given :

The Amount after investment of money = A = Rs 855

The time period for investment = T = $\dfrac{7}{2}$ = 3.5 years

The rate of interest = 4 % at simple interest

To Find :

The sum of money invested

Solution :

Let The sum of money invested = Rs P

From simple interest method

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

Or,                      = $\dfrac{ P \times R \times T}{100}$

Or,                      = $\dfrac{ P \times 4 \times 3.5}{100}$

Or, Interest = 0.14 P

Again

∵  Interest = Amount - Principal

      0.14 P = Rs 855 - Rs P

Or,  0.14 P + P = 855

Or, 1.14 P = 855

∴          P = $\dfrac{855}{1.14}$ = 750

Or, Sum = P = Rs 750

Hence, The sum of money invested is Rs 750  . Answer