Multiple choice

If the amount is Rs. $500$ and the interest is Rs.$ 100$, then principal is

  1. Rs. $100$
  2. Rs. $400$
  3. Rs. $600$
  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Amount = Principal + Interest. Given Amount = 500 and Interest = 100, Principal = 500 - 100 = 400.

AI explanation

The basic formula connecting amount, interest, and principal is Amount = Principal + Interest. Rearranging this to solve for the principal gives Principal = Amount - Interest, which is 500 - 100. The result is Rs. 400.