What sum of money will produce Rs.70 as simple interest in 4 years at

1.	What sum of money will produce Rs.70 as simple interest in 4 years at 3 1/2 percent?
Answer» This question relates to finding the Principle amont from investing in a fixed account. We know that, Interest = Principle Rate% Time Therefore: Interest = Rs.70, Rate = 3.5% and Time is 4 years Therefore , Rs 70 = P* 3.5% 4 70 100 = P14 =>P = 7000/14=> P= 500 ∴Sum=Rs.500 Let sum of money = P,Given,Rate of Interest R = 3 1/2 or 7/2%, T = 4 years Using formula for Simple InterestSI = PRT/10070 = P(7/2)4/100P = 70100/14P = 500 Therefore,Sum of money = Rs 500

What sum of money will produce Rs.70 as simple interest in 4 years at 3 1/2 percent?

Answer»

This question relates to finding the Principle amont from investing in a fixed account.

We know that, Interest = Principle *Rate% * Time Therefore: Interest = Rs.70, Rate = 3.5% and Time is 4 years

Therefore , Rs 70 = P* 3.5% *4

70 * 100 = P*14 =>P = 7000/14=> P= 500

∴Sum=Rs.500

Let sum of money = P,Given,Rate of Interest R = 3 1/2 or 7/2%, T = 4 years

Using formula for Simple InterestSI = P*R*T/10070 = P*(7/2)*4/100P = 70*100/14P = 500

Therefore,Sum of money = Rs 500