Question

Find the principal which amount to Rs.$4,000$ in $4$ years at $6.25\%$ per annum.

• A. Rs.$1,500$
• B. Rs.$1,700$
• C. Rs.$2,700$
• D. Rs.$3,200$

Answer 1

Answer: (D)

Rs.$3,200$

Simple Interest $I=\frac{PNR}{100}$
Amount $A=P+I$, where $P$ is the principal
Given, $A=$ Rs. $4,000$, $N=4$ years and $R=6.25$ $\%$
So, $4,000=P+\frac{P\times 4\times 6.25}{100}$
$\Rightarrow 4000=P+0.25P$
$\Rightarrow 4000=1.25P$
$\Rightarrow P=$ Rs. $3,200$