Question

Find the sum of money when

(i) simple interest at $7\frac{1}{4}$% p.a. for years is Rs 2356.25

Answer 1

Here,

I = Rs 2356.25

R = $7\frac{1}{4}$% p.a.

= 29 / 4 % p.a.

T = $2\frac{1}{2}$years

= 5 / 2 years

Hence,

P = (I × 100) / (R × T)

= Rs (2356.25 × 100) / (29 / 4) × (5 / 2)

On further calculation, we get,

= Rs (2356.25 × 100 × 4 × 2) / (29 × 5)

= Rs (235625 × 8) / (29 × 5)

We get,

= Rs (47125 × 8) / 29

= Rs 1625 × 8

= Rs 13000