Question

A sum of money invested at $14\%$ per annum amounted to $Rs.$ $10400$ in $5$ years. Calculate the principal.

• A. $Rs.6067.34$
• B. $Rs.6278.24$
• C. $Rs.6384.62$
• D. $Rs.6117.65$

Answer 1

Answer: (D)

($Rs.6117.65$)

We have the formula for amount in simple interest as: $A=P(1+rt)$
Given, $A=10400$, $t=5$, $r=14\%=\frac{14}{100}$

$\therefore 10400=P(1+5(0.14\left)\right)$

$\Rightarrow 10400=P(1+0.7)$

$\Rightarrow 10400=P\left(1.7\right)$
$P=\frac{10400}{1.7}$
$\therefore P=\mathrm{6117.647.6}$
Hence, the principal amount is Rs. $6117.65$.