A man invests a sum of money at a rate of 10% per annum. If he receives a total
Practice Questions
Q1
A man invests a sum of money at a rate of 10% per annum. If he receives a total interest of Rs. 600 after 3 years, what was the principal amount? (2000)
Rs. 1500
Rs. 2000
Rs. 2500
Rs. 3000
Questions & Step-by-Step Solutions
A man invests a sum of money at a rate of 10% per annum. If he receives a total interest of Rs. 600 after 3 years, what was the principal amount? (2000)
Step 1: Understand the formula for simple interest, which is SI = PRT/100, where SI is the simple interest, P is the principal amount, R is the rate of interest, and T is the time in years.
Step 2: Identify the values given in the question: SI = 600 (total interest), R = 10 (rate of interest), and T = 3 (time in years).
Step 3: Substitute the known values into the formula: 600 = P * 10 * 3 / 100.
Step 4: Simplify the equation: 600 = P * 30 / 100.
Step 5: Multiply both sides by 100 to eliminate the fraction: 60000 = P * 30.
Step 6: Divide both sides by 30 to solve for P: P = 60000 / 30.
Step 7: Calculate the value: P = 2000.
Simple Interest Calculation – Understanding the formula for calculating simple interest, which is SI = PRT/100, where SI is the simple interest, P is the principal amount, R is the rate of interest, and T is the time in years.
