What was the sum invested?
Simple Interest: Calculate Sum Invested
This problem involves finding the original amount invested (the principal) when the final amount, the time period, and the simple interest rate are known.
Given Information
- Time (T): 8 years
- Rate (R): 5% per annum
- Amount (A): ₹175
- Unknown: Principal (P)
Simple Interest Formula
The relationship between Amount (A), Principal (P), Rate (R), and Time (T) in simple interest is:
A = P + SI
Where Simple Interest (SI) is:
SI = $\frac{P \times R \times T}{100}$
Combining these, we get the formula for the Amount:
A = P $\left( 1 + \frac{R \times T}{100} \right)$
Calculation Steps
- Plug the known values into the Amount formula:
$175 = P \left( 1 + \frac{5 \times 8}{100} \right)$
- Simplify the expression within the parentheses:
$175 = P \left( 1 + \frac{40}{100} \right)$
$175 = P \left( 1 + 0.4 \right)$
$175 = P (1.4)$
- Solve for the Principal (P):
$P = \frac{175}{1.4}$
$P = \frac{1750}{14}$
$P = 125$
Result
The sum invested was ₹125.
Similar Questions
- An amount becomes eight-fifth of the original amount in 5 years at what percentage rate of simple interest per annum?
- The rate at which a sum becomes 2 times of itself in 10 years at simple interest is:
- How many years will it take for an amount of ₹400 to yield ₹450 as interest at 5% per annum on simple interest?
- Vikas took a loan of ₹1,200 on simple interest that is equal to as many years as the rate of interest. If he paid ₹768 as interest at the end of the loan period, then what was the rate of interest?
- A sum of money amounts to ₹12,000 after 6 years and ₹15,000 after 9 years at the same rate of simple interest. What is the rate of interest per annum?
- What will be the amount of simple interest on ₹75,000 at the rate of $2\frac{5}{3}\%$ per annum for a period of 5 years?
- If the simple interest for 7 years is equal to 56% of the principal, it will be equal to the principal after:
- A woman borrowed some money on simple interest. After 4 years she returned $\frac{6}{5}$ of money to the lender. What was the rate of interest?
- A certain sum of money amounts to ₹2,613 in 6 years at 5% simple interest per annum. In how many years will it amount to ₹3,015 at the same rate?
- Anita takes a loan of ₹5,000 at 15% per year as rate of simple interest. Find the interest she has to pay at the end of one year.
Important Questions from Simple Interest
How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
P borrowed an amount from Q at a simple interest of 10% p.a. At the end of the year, P paid back Rs 99000 which was 90% of what she owed. How much money did P borrow?
An amount becomes Rs. 3795 in 3 years and Rs. 4537.50 in \(7 \frac{1}{2}\) years on simple interest. Find the rate of interest per annum.
