Question

Find the principal.

Annual rate of interest = 8 \%=8%equals, 8, percent
Period = 5=5equals, 5 years
Total interest= 2900=2900equals, 2900 rupees
Principal ==equals
rupees

Answer 1

The required Principal Amount = 7,250.

Explanation:

Let us assume, the Principal Amount = P

Rate of interest = 8%

Time = 5 years

Total Simple Interest = 2900

Now,
`\textrm{SIMPLE INTEREST}  = (P * R * T)/(100)`

`\implies 2900 = (P * 8 * 5)/(100) \\\implies  P = (2900 *100)/(8 * 5)  = 7,250`

or, P = 7,250

Hence, the required Principal Amount = 7,250.