Question

Find Principal if the interest is $₨140$ at $4\%$ p.a. for $2$ years.

Answer 1

Given:

Simple interest $=₨140$

Rate of Interest $=4\%$ p.a

Time$=2$years

Let principal $=₨\mathrm{P}$

We know that

Simple interest $=\frac{\mathrm{P}\times \mathrm{R}\times \mathrm{T}}{100}$

Then,

$140=\frac{\mathrm{P}\times 4\times 2}{100}$
$$\begin{gathered} \Rightarrow \mathrm{P}=\frac{140\times 100}{4\times 2} \\ \Rightarrow \mathrm{P}=70\times 25 \\ \Rightarrow \mathrm{P}=1750 \end{gathered}$$

Hence, the required principal is $₨1750$.