Question

On what principal will the simple interest be Rs.7,008 in 6 years 3 months at 5% per year ?

Answer 1

Simple Interest is given by

$I=\frac{PNR}{100}$

Where $I$ = simple interest

$P$ = Principal

$N$ = number of years

$R$ = rate of interest

Given,
$I=Rs.7008$
$N=6$ years and $3$ months $=6\frac{3}{12}=6\frac{1}{4}=\frac{25}{4}$ years
$R=5$

Substituting the values in the formula:

$\Rightarrow 7008=\frac{P\times \frac{25}{4}\times 5}{100}$

$\Rightarrow 7008=\frac{P\times 125}{400}$

$\Rightarrow P=Rs.22425.60$