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Question

Find the Principal.

Amount = Rs.3,960; time = 4 years; rate of interest = 8% p.a

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Solution

Amount (A) = Rs.3,960

Time (T) = 4 years

Rate (R) = 8% p. a.

Principal (P) = ?

Let the principal be Rs.100.

If the amount is Rs.132, then the principal is Rs.100.

If the amount is Rs.1, then the principal is Rs..

If the amount is Rs.3,960, then the principal is:


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