Question

What sum of money must be given at si for six months at 4 per annum in order to earn rs.150 interest?

Answer 1

Formula to calculate Simple Interest?

If P denotes the principal ($), R denotes the rate (percentage p.a.) and T denotes time (years), then:-

S.I = (P × R × T)/100

R = (S.I × 100)/(P × T)

P = (S.I × 100)/(R × T)

T = (S.I × 100)/(P × R)
If the denotes the amount, then A = P + S.I

Answer 2

S.I = P*T*R / 100

150=P*0.5*4/ 100 (ie.6 months= 6/12=0.5yrs)

P=150*100/ 2

P= 7500