Rs. 4300 becomes Rs. 4644 in 2 years at simple interest. Find the principle amount that will become Rs 10,104 in 5 years at the same rate of interest.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. Rs 8,420
| Understanding | Application |
|
Tricks SI = A - P |
SI = P × R × T/100 ⇒ 344 = 4300 × R × 2/100 ⇒ 344 = 43 × R × 2 ⇒ R = 4% |
| Now |
⇒ 10104 - P = (P × 4 × 5)/100 ⇒ 10104 - P = P/5 ⇒ 1684 = P/5 ⇒ P = 8420 |