Question

If the principal amount of 3550 in 4 years at the rate of 10.5%p.c.p.a. simple interest what is the principal?​

Answer 1

can you explain question more wisely it's not clear like what we have to find them I will answer you in the comment section

Answer 2

Answer:

2500

Step-by-step explanation:

Let Pₙ represent the amount after n years.

We must find P₀ ... the principal at the start.

Simple interest after n years is

I = n R P₀

where R is the per annum rate.

So the amount of money after n years is

Pₙ = P₀ + I = P₀ + n R P₀  =  ( 1 + n R ) P₀

We are given Pₙ = 3550,  n = 4,  R = 10.5% = 0.105.

So

3550 = ( 1 + 4 × 0.105 ) P₀  = 1.42 P₀

=> P₀ = 3550 / 1.42 = 2500