Question

How much balance we have to save to get Rs 120 interest on 3 years by 2% weight for Annum​

Answer 1

Principal, P = Rs. 2000

Explanation:

Given the following data;

• Simple interest (S.I) = Rs. 120
• Interest rate, R = 2%
• Time, T = 3 years

To find how much balance (principal) is to be saved, we would use the formula;

`S.I = \frac {PRT}{100}`

Where;

• S.I is the simple interest.
• P is the principal.
• R is the interest rate.
• T is the time measured in years.

Making "P" the subject of formula, we have;

`P = \frac {100S.I}{RT}`

Substituting the values into the formula, we have;

`P = \frac {100 * 120}{2 * 3}`

`P = \frac {12000}{6}`

Principal, P = Rs. 2000

Therefore, you'll have to save up to Rs. 2000.