Question

Find the principle on a certain sum of money at 5% per annum for 2 2/5 years if the amount is being 1120rs

Answer 1

SI = P x R x T. Divided by 100
SI = P x 5 x 12/5. Divided by 100
SI = 12P/100
Amount = SI + P
1120 = 12P/100 + P
1120 = 112P/100
P = 1120 x 100. Divided by 112
Principle = Rs. 1000

Answer 2

Given,

Rate of interest=5%

Time=12/5 years

Total amount=1120rs

To Find,

Principle amount on this values.

Solution,

We can calculate principle amount by calculating the value of Simple interest first and for that we are going to use the formula,

SI =( P x R x T)/100

⇒SI = (P x 5 x 12/5)100

⇒SI = 12P/100

We know total amount = SI + P

⇒1120 = 12P/100 + P

⇒1120 = 112P/100

⇒P =( 1120 x 100) /112

⇒P=1000rs

Hence, the principle amount is 1000rs.