The simple interest on a certain sum at the rate of 12.5% p.a. for 3 years and 6 months is ₹6,750 less than the principal. Find out the principal.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e ₹12,000.
SI = (P × R × T) / 100
SI = (P × 12.5 × 3.5) / 100
SI = (P × 43.75) / 100 = 0.4375P
But SI = P - 6750
So:
0.4375P = P - 6750
⇒ P - 0.4375P = 6750 ⇒ 0.5625P = 6750 ⇒ P = 6750 / 0.5625 ⇒ P = 12,000