Question 70

A sum of money invested for 2 years and 9 months at the rate of 8% simple interest per
annum became ₹ 732 at the end of the period. What was the sum that was initially invested?

Solution

For Simple Interest-

We know that Amount = Prinicipal + Interest

Here interest = $$\frac {P \times R \times T} {100} $$

Amount = $$P + \frac {P \times R \times T} {100} $$

Where,

P - Principal Amount

R - Annual Interest Rate = 8%

T - Time (in years) = 2 years 9 months = 2 $$\frac {9}{12} = 2 \frac{3}{4} = \frac {11}{4}$$

Putting values,

732 = $$P + \frac {P \times R \times T} {100} $$

$$732 = P + \frac {P \times 8 \times  11} {4 \times 100}$$

P= 600


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