A sum of money lent for 7 yrs at 7% per annum simple interest yields an interest of Rs. 2450. find the amount received.
Answers
Answered by
6
Solution!!
The concept of simple interest has to be used here. The simple interest, rate of interest and time is given in the question.
Simple interest is the money which we have to pay on a loan or which we earn on depositing and lending money.
We are asked to find the amount but first we will calculate the principal. Some formulae related to simple interest should be memorized in order to solve such questions.
SI = Rs 2450
Rate of interest = 7%
Time = 7 years
SI = (P × R × T)/100
2450 = (P × 7 × 7)/100
2450 × 100 = P × 7 × 7
245000 = P × 7 × 7
245000 = 14P
P = 245000 ÷ 14
P = Rs 17500
Amount = Principal + SI
Amount = Rs 17500 + Rs 2450
Amount = Rs 19950
Abbreviations used:-
P → Principal
R → Rate of interest
T → Time
SI → Simple interest
Similar questions