Question

Find the principal when the following are given.
$I=Rs20$ Rate=$2$ per annum Time=$2$ years

Answer 1

As we know that,

$S.I.=\frac{P\times R\times t}{100}$

Given:-

$S.I.=Rs.20$

$R=2\%$

$t=2\text{years}$

$P=?$

Therefore,

$20=\frac{P\times 2\times 2}{100}$

$\Rightarrow P=\frac{2000}{4}=Rs.500$