Question

Find the principal which will amount to ₹4000 in 4 years at 6.25%p.a.

Answer 1

Given,
Time =4 years
Rate of Interest =6.25
Amount =4000 Rs.

We know that

A =P (1+TR /100)

4000=P ( 1+ 4*6.25 /100)

4000= P ( 1+25/100)

4000=P ( 1+1/4)

4000=P * 5/4

16,000/5=P

3200 = P

The principal which will amount to ₹4000 in 4 years at 6.25%p.a. is ₹ 3200

Answer 2

let the principal be x

4000-x=x×4×6.25/100

4000-x=25x/100

400000-100x=25x

400000=125x

x=400000/125

x=3200