Question

Q. Find the sum which, at 12.5 per cent per annum simple interest, becomes Rs 7200 in 4 years.​

Answer 1

Principal sum of money is Rs 4800.

Step-by-step explanation:

We have to find the sum which becomes Rs 7200 at 12.5 per cent per annum simple interest in 4 years.

Let Principal sum of money = P

Rate of Interest = R

Time Period = T

Amount of money = A

Simple Interest = S.I.

Now, the simple interest formula is given by;

    Simple Interest (S.I.) =  $\frac{P\times R\times T}{100}$

Here, R = 12.5%

          T = 4 years

So,  Simple Interest (S.I.)  =  $\frac{P\times 12.5\times 4}{100}$

                                          =  $\frac{P\times 50}{100}$ =  $0.5P$

Now, The amount is calculated in simple interest situation by;

       Amount = Principal + Simple Interest

                A   = P + $\frac{P\times R\times T}{100}$

                A   = P + $0.5P$

       Rs 7200 = $1.5P$

                P = $\frac{7200}{1.5}$ = Rs 4800

Therefore, the sum which becomes Rs 7200 at 12.5 per cent per annum simple interest in 4 years is Rs 4800.