Question

find the principal when principal amount :
1 final amount is rupees 500 at 20 percentage for amount for 5 year​

Answer 1

Given :

Total Amount : ₹500

Rate of interest : 20%

Time : 5 years

To find :

The principle amount borrowed from the bank.

Solution :

First, we should find the simple interest.

$\sf \dashrightarrow SI = \dfrac{P \times R \times T}{100}$

$\sf \dashrightarrow \dfrac{P \times 20 \times 5}{100}$

$\sf \dashrightarrow \dfrac{P \times 1 \times 5}{5}$

$\sf \dashrightarrow \dfrac{P \times 5}{5}$

$\sf \dashrightarrow \dfrac{5P}{5}$

Now, let's find the value of principle amount by the formula of total amount.

Principle :

$\sf \dashrightarrow Total \: amount = Simple \: Interest + Principle$

$\sf \dashrightarrow 500 = \dfrac{5P}{5} + P$

$\sf \dashrightarrow 500 = \dfrac{5P + 5P}{5}$

$\sf \dashrightarrow 500 = \dfrac{10P}{5}$

$\sf \dashrightarrow \dfrac{10P}{5} = 500$

$\sf \dashrightarrow 10P = 500 \times 5$

$\sf \dashrightarrow 10P = 2500$

$\sf \dashrightarrow P = \dfrac{2500}{10}$

$\sf \dashrightarrow P = 250$

Hence, the value of principle is ₹250.