Any sum invested for 3.5 years at 12% annual interest becomes Rs. 994

1.	Any sum invested for 3.5 years at 12% annual interest becomes Rs. 994 at maturity. What was the principal amount invested?1. Rs. 700 2. Rs. 750 3. Rs. 725 4. Rs. 720
Answer» Correct Answer - Option 1 : Rs. 700 Given: Rate of interest = 12% time = 3.5 years Formula used: Simple interest = (principal amount × rate of interest × time)/100 Calculation: Let P be the principal amount So, S.I. = 994 – P ⇒ 994 – P = (P × 12 × 3.5)/100 ⇒ 99400 – 100P = 42P ⇒ 142P = 99400 ⇒ P = 700 Rs ∴ The principal amount invested was Rs. 700.

Any sum invested for 3.5 years at 12% annual interest becomes Rs. 994 at maturity. What was the principal amount invested?1. Rs. 700 2. Rs. 750 3. Rs. 725 4. Rs. 720

Answer» Correct Answer - Option 1 : Rs. 700

Given:

Rate of interest = 12%

time = 3.5 years

Formula used:

Simple interest = (principal amount × rate of interest × time)/100

Calculation:

Let P be the principal amount

So, S.I. = 994 – P

⇒ 994 – P = (P × 12 × 3.5)/100

⇒ 99400 – 100P = 42P

⇒ 142P = 99400

⇒ P = 700 Rs

∴ The principal amount invested was Rs. 700.

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Any sum invested for 3.5 years at 12% annual interest becomes Rs. 994 at maturity. What was the principal amount invested?1. Rs. 700 2. Rs. 750 3. Rs. 725 4. Rs. 720

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