Question

Find the sum which earned $₹1200$ as simple interest in $5$ years, rate of interest being $12\%$ p.a.

Answer 1

STEP 1 : Given

Simple interest (S.I.) $=₹1200$

Rate of interest (R) $=12\%perannum$

Time period (T) $=5years$

STEP 2 : Finding the principal amount

Principal (P) $=\frac{S.I.\times 100}{R\times T}=\frac{1200\times 100}{12\times 5}$

Principal (P) $=100\times 20=Rs.2000$

Hence, the sum which earned $₹1200$ as simple interest in $5$ years at the rate of $12\%$ p.a. is .$Rs.2000$