Question

Principal = 5300 rupeesAnnual rate of interest6.5%Total amount = 6678 rupeesPeriod = years

Answer 1

Given:

Principal P = 5300 rupees.

Annual rate of interest r = 6.5% = 0.065.

Total amount A = 6678 rupees.

Consider the formula to get the amount by simple interest.

`A=P(1+rt)`

Substitute P =5300, r= 0.065 and A=6678 in the formula, we get

`6678=5300(1+0.065t)`

Dividing both sides by 5300, we get

`(6678)/(5300)=(5300\mleft(1+0.065t\mright))/(5300)`

`(6678)/(5300)=1+0.065t`

Subtracting 1 from both sides of the equation, we get

`(6678)/(5300)-1=1+0.065t-1`

`(6678)/(5300)-1=0.065t`

Dividing both sides by 0.065, we get

`((6678)/(5300)-1)*(1)/(0.065)=(0.065t)/(0.065)`

`((6678)/(5300)-1)*(1)/(0.065)=t`
`4=t`

Hence the period = 4 years.