Question

What sum of money borrowed on 24th May will amount to Rs. 10,210.20 on 17th October of the same year at 5 percent per annum simple interest

Answer 1

Answer:

A = Rs. 10210.20

R = 5% P.A.

T=May + June + July + August + Sept.+ Oct.

= 7 + 30 + 31 + 31 + 30 + 17

= (146/365) days = (2/5) years

We know that :

P + I = A

⇒ P + ((P × R × T)/100) = A

⇒ P (1 +(R × T)/100) = A

⇒ P (1 + (5 × (2/5)/100) = Rs. 10210.20

⇒ P (1 + (2/100) = Rs. 10210.20

⇒ P × (102/100) = Rs. 10210.20

⇒ P = Rs. 10210.20 × (100/102)

⇒ P = Rs. (1021020/102)

⇒ P = Rs. 10010

∴ Money to be borrowed = Rs. 10010