Multiple choice

The maturity value after three years, of a certain sum at 15% p.a. simple interest, is Rs. 8,700. Find the principal amount.

  1. Rs. 5000

  2. Rs. 6000

  3. Rs. 5500

  4. Rs. 6500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula is A = P(1 + rt/100). Here, 8700 = P(1 + (15 * 3)/100) = P(1 + 0.45) = 1.45P. P = 8700 / 1.45 = 6000.

AI explanation

Using the simple interest formula, the maturity amount is Principal plus Simple Interest, so 8700 = P + (P x 15 x 3) / 100. This simplifies to 8700 = P + 0.45P, which equals 1.45P. Solving for the principal gives P = 8700 / 1.45, resulting in Rs. 6000. The correct answer is Rs. 6000.

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