Question

If a certain sum of money earns an interest of Rs 3,630 in 3 years at the rate of 11 p.c.p.a, what was the principal?

Answer 1

Interest = Rs 3,630
Rate of interest = 11% p.a.
Number of years = 3 years
Let principal be Rs p
Simple Interest$=\frac{\mathrm{Principal}\times \mathrm{Rate}\times \mathrm{Time}}{100}$

$$\begin{gathered} \Rightarrow 3630=\frac{p\times 11\times 3}{100} \\ \Rightarrow 3630=\frac{33p}{100} \\ \Rightarrow 33p=3630\times 100 \\ \Rightarrow p=\frac{3630\times 100}{33} \\ \Rightarrow p=11000 \end{gathered}$$

∴ The principal is Rs 11000