Question

If the amount paid at the end of 4 years is equal to Rs. 6000 at 5% per annum, find the principal.

• A. Rs. 1000
• B. Rs. 5000
• C. Rs. 6000
• D. Rs. 4000

Answer 1

The correct option is B

Rs. 5000

Let the principal be x.

$SI=\left(\frac{PRT}{100}\right)=\left(\frac{x\times 5\times 4}{100}\right)=\frac{x}{5}$

Amount =Principal + SI

So, x + $\frac{x}{5}$ = 6000

$\frac{6x}{5}$ = 6000

x = (\frac{6000 \times 5}{6})\) =Rs. 5000