Question

What sum of money borrowed on 24th may will amount to 10,210.20 on 17th ocotober of the same year at 2 percent per annum simple interest

Answer 1

Given

Principal Amount= P = ?

Rate of Interest Per annum= R= 2 %

Time = T = 24may to 17th October
= 7 days + 30 +31 +31 + 30 +17 = 146 days

146/365 days = 0.4year

Amount = 10210.20

We know that

Amount= P(1+TR)

10210.20=P(1 + 0.4×2/100)

10210.20=P(1 + 0.008)

10210.20 =P(1.008)

10210.20/1.008 = P

10129.16 = P is the Principal Amount borrowed