Question

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

Answer 1

Answer:

Step-by-step explanation:

Answer 2

The principal sum of money is Rs. 7500.

Given:

Rate of interest = 4%

Time period = 6 months

Amount of interest = Rs. 150

To Find:

the value of the principal sum of money

Solution:

Let the principal amount be P

Now, simple interest is calculated as-

SI = PRT/100

Here, R = 4, T = 6 months or 0.5 years

Thus, substituting the values in the simple interest formula, we get-

150 = 4 × 0.5 × P/100

150 × 100 = 2P

P = 15000/2

P = 7500

Thus, the principal sum of money comes out to be Rs. 7500.

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