Question

Find the principal which will amount to₹4000 in 4 years at 6.25% per annum

Answer 1

Answer:

Consider principle =Rs.P, Time (T)=4 years

Rate =6

4

1

=

4

25

%

Simple interest =

100

P×T×R

=

100

P×

4

25

×4

=

4

P

=∴ Amount =P+

4

P

=

4

5P

=

4

5P

=4000

5P=4×4000

P=Rs.3200

Therefore, Principle =Rs.3200