Question

A sum of money invested at 8% per annum for simple interest amounts to ₹12122 in 2 years. Find the principal amount borrowed.

Answer 1

Solution:
Interest = $\frac{(P\times R\times T)}{100}$
(Where R = Rate p.a, T = Time in years)


= $\frac{₹100\times 8\times 2}{100}$
= ₹ 16
Amount = Principal + Interest = ₹100 + ₹ 16 = ₹116

We know when Amount is ₹ 116, Principal is ₹100
When Amount is ₹12,122, Principal would be $\frac{₹12122\times 100}{116}$
= ₹10,450

Answer : ₹10,450