Question

What sum will earn an interest of ₹162 in 3 years at the rate of 12% per
annum?

Answer 1

Interest = ₹162

Time = 3 years

Rate = 12%

We have to find the principal

We will use the formula of simple interest

Simple interest = ( principal × rate × time )/100

Now, we will put the values in the above formula

         162 = (principal × 12 × 3)/100

      16200 = principal × 36

principal = 16200 / 36

              = 450

Hence, a sum of ₹450 will earn an interest of ₹162 in 3 years at the rate of 12% per  annum