Multiple choice

An amount invested at simple interest gives Rs. 2550 interest at rate of 17% per annum in 3 years. What is the principal (in Rs.)?

  1. 4000

  2. 5000

  3. 6000

  4. 4500
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B Correct answer
Explanation

Simple interest formula: SI = (P * R * T) / 100. 2550 = (P * 17 * 3) / 100. 2550 = 51P / 100. P = 255000 / 51 = 5000.

AI explanation

Using the simple interest formula, principal equals simple interest multiplied by 100 divided by the product of rate and time. Substituting the given values gives principal equals 2550 multiplied by 100 divided by the product of 17 and 3. This simplifies to 255000 divided by 51, which makes the principal Rs. 5000.

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