Question

A sum of money amounts to Rs. 1500 in 5 years at 10% per annum at simple interest. Find the sum​

Answer 1

Sum of  Rs 1000 amounts to Rs. 1500 in 5 years at 10% per annum at simple interest

Given:

• A sum of money amounts to Rs. 1500 in 5 years at 10% per annum at simple interest.

To Find:

• The Sum

Solution:

• SI = P x R x T /100
• A = P + SI
• SI = Simple interest
• P = Principal (Sum Deposited)
• A = Amount  ( Maturity Amount)
• R = Rate of Interest in % per annum
• T = Time in Years

Step 1:

Assume that the sum deposited is Rs P

Step 2:

Find SI  using formula and substituting  R = 10 and T = 5

SI = P x 10 x 5 /100

SI  = P/2

Step 3:

Add SI = P/2 with Sum P  and Equate with Amount A= 1500 and solve for P

P + P/2 = 1500

=> 3P = 3000

=> P = 1000

Hence, Sum is Rs 1000