₹4,300 becomes ₹4,644 in 2 years at simple interest. Find the principle amount that will become ₹10,104 in 5 years at the same rate of interest.
Answer & explanation
Correct answer: option 2
Principal (P) = Rs 4300 , Amount ( A) = Rs 4644 and Time ( T) = 2 year
Interest ( I) = 4644 - 4300 = Rs 344
∴ Interest = \(\frac{Principal ×Rate × Time }{100}\)
⇒ 344 = \(\frac{ 4300 × R × 2 }{100}\)
⇒ Rate % = 4 %
Again
A = 10104 , R= 4% , T= 5 years
as we know
A= P + \(\frac{Principal ×Rate × Time }{100}\)
⇒ 10104 = P + \(\frac{P ×4 × 5 }{100}\)
⇒ \(\frac{6 P}{5}\) = 10104
⇒ P = Rs 8420