Question

How much money Anil should invest which will give him an interest of ₹1512 in 4 1⁄2 years at 3 1⁄2 % per annum simple interest?

Answer 1

₹
`9,600`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the amount interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=4.5\ years\\ P=?\\ I=1,512\\r=0.035`

substitute in the formula above

`1,512=P(0.035*4.5)`

`P=1,512/(0.035*4.5)=9,600`