Question

Find the principal which will amount to Rs. 4000 in 4 years at 6.25% per annum.

Answer 1

Let Principal =Rs. P, Time (T) =4 years
Rate=$6\frac{1}{4}=\frac{25}{4}$
Simple interest= $\frac{P\times T\times R}{100}=\frac{P\times \frac{25}{4}\times 4}{100}=\frac{P}{4}$
$\therefore$ Amount= $P+\frac{P}{4}=\frac{5P}{4}$
$\frac{5P}{4}=4000$ (Given)
$\Rightarrow 5P=4\times 4000$
$P=\frac{4\times 4000}{5}=4\times 800$
$\Rightarrow P=Rs.3200$ Hence principal =Rs. 3200