Question

Find the sum which will amount to ₹700 in 5 years at 8% rate p.a.

Answer 1

Amount = ₹ 700, Rate (R) = 8 % p.a.

Time (T) = 5 years

Let principal (P) = ₹ 100

then S.I. =`"P.R.T."/100 = (100 xx 8 xx 5)/100 = ₹ 40`

∴ Amount (A) = P + S.I.

= ₹ 100 + 40 = ₹ 140

If amount is ₹ 140, then principal = ₹ 100

and, if amount is Rs. 700, then principal 

`= ₹ (100 xx 700)/140 = ₹ 500`