Question

What principal amount should Reema take at the rate of $10.5\%$ for 3 years and 4 months , to pay the interest of Rs.4200 ? How much amount would Reema have to pay ?

• A. Rs.12,000 , Rs.16,200
• B. Rs.1,000 , Rs.16,200
• C. Rs.12,000 , Rs.12,200
• D. Rs.1,000 , Rs.6,200

Answer 1

The correct option is A Rs.12,000 , Rs.16,200

$\text{Acc to ques, we have to find principal amount should Reema take}$
$\text{at the rate of 10.5 \% for 3 years and 4 months, to pay the interest of ₹ 4200.}$

$\text{Rate of interest = 10.5\%}$
$\text{Time = 3 yrs 4 months.}=3yrs+\frac{4}{12}yrs=3+\frac{1}{3}=\frac{10}{3}yrs$
$\text{Interest = ₹ 4200.}$
$\text{Principal = ?}$
$\text{Principal}=\frac{(Interest\times 100)}{(Rate\times Time)}$
$or,Principal=\frac{(4200\times 100)}{(10.5\times (10/3\left)\right)}$
$\text{or, Principal = 420000 / 35 = Rs 12000.}$
$\text{Amount Reema have to pay = 12000 + 4200 = Rs 16200}$