Question

On an amount simple interest of 1.5 years at 8% per annum is Rs. 420. Find the principal. *

Answer 1

Principal of Rs 3500 gets a simple interest of Rs 420 in 1.5 years at 8% per annum.

Given:

• Simple interest of 1.5 years at 8% per annum is Rs. 420.

To Find:

• The principal

Solution:

• SI = P x R x T /100
• SI = Simple Interest
• P = Principal
• R = Rate of Interest per annum in %
• T = Time in Years

Step 1:

Use the formula for SI and substitute SI = 420 , R = 8 and T = 1.5

=> 420 = P x 8 x 1.5/100

=> 420 = 12P/100

Step 2:

Solve for P

420 x 100  = 12P     ( Multiply both sides by  100)

35 x 100  =  P     ( Divide both sides by  12)

3500 = P

Principal of Rs 3500 gets a simple interest of Rs 420 in 1.5 years at 8% per annum.