If the present amount is ₹ 87,750 with 8% rate of interest in four years, then what was the principal amount?
Answer & explanation
Correct answer: option 2
Total simple interest of 4 years = 4 × 8% = 32%
Let Principal = 100%
Amount = Principal + Simple Interest
= 100% + 32%
= 132%
ATQ ,
132% = 87750
1% = \(\frac{87750 }{132}\) = 664.772
Initial sum = 100% = 100 × 664.772 = Rs. 66477.2