Find the principal that will gain Rs. 84 interest in 2 years at 4% per annum?
- Rs. 505/-
- Rs. 1050/-
- Rs. 1000/-
- None of these
Explanation
To find the principal (P), use the formula:
Simple Interest (SI) = (P × Rate × Time) / 100
Rearrange the formula to solve for P:
P = (SI × 100) / (Rate × Time)
P = (84 × 100) / (4 × 2)
P = 1050
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