A sum at simple interest at27/2%per annum amounts toRs2502.50 after 4 years. Find the sum.

A sum at simple interest at27/2%per annum amounts toRs2502.50 after 4 years. Find the sum.

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  1. Answer:

    The sum is Rs. 1625

    Step-by-step explanation:

    The amount of simple interest is given by,

    A = P (1+rt)

    [Where P is principal amount

    r is interest rate in decimal

    t is number of years]

    Given, A=Rs.2502.50, r = 27/(2×100), t=4

    2502.5= P {1+(27÷200)×4}

    ⇒2502.5 = 1.54P

    ⇒P = Rs.1625

    ∴ The sum is Rs.1625.

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