Question

Find the principal. Annual rate of interest = 11 \%=11%equals, 11, percent Period = 3=3equals, 3 years Total interest = 825=825equals, 825 rupees Principal ==equals rupees

Answer 1

Principal = 2,500 rupees

Explanation:

The interest or simple interest is the extra money gained on n invested amount of money yielding a certain percentage interest at a time (t) in years

The formula for simple interest is given as follows:

I = P × R × T

where:

I = interest = 825 rupees

P = principal

R = interest rate = 11% = 11/100 = 0.11

T = time = 3 years

∴ 825 = P × 0.11 × 3

825 = P × 0.33

P = 825 ÷ 0.33

P = 2,500 rupees

This means that 2,500 rupees was invested to saved to yield an interest of 825 rupees after 3 years at a rate of 11% per year