Question

If a certain sum of money earns an interest of ₹ 2500 in 3 years at a rate of 12p.c.p.a, what was the principal?

• A. Rs 6944.44
• B. Rs 6954.44
• C. Rs 6844.44
• D. Rs 6914.44

Answer 1

The correct option is A Rs 6944.44

Given

S.I = ₹ 2500 ,T = 3 years , R = 12%

We know that

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

2500= $\frac{P\times 12\times 3}{100}$

P= $\frac{2500\times 100}{12\times 3}$

P = $\frac{250,000}{36}$= ₹ 6944.44