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Course: Aptitude Made Easy: The Complete Guide t...
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Curriculum

Aptitude Made Easy: The Complete Guide to Success

Video lesson

Question 1: Understanding Simple Interest: Principal and Interest Calculation

  • Simple Interest Formula:

    SI=P×R×T100SI = \frac{P \times R \times T}{100}

    Where:

    • SISI: Simple Interest
    • PP: Principal (amount borrowed)
    • RR: Rate of interest per annum
    • TT: Time in years
  • Rearranging the formula to find PP:

    P=SI×100R×TP = \frac{SI \times 100}{R \times T}

    Given Question:

    • Rate (R) = 12% per annum
    • Time (T) = 3 years
    • Simple Interest (SI) = ₹5,400

    Solution:

    1. Write the formula for principal:

      P=SI×100R×TP = \frac{SI \times 100}{R \times T}

    2. Substitute the given values:

      P=5400×10012×3P = \frac{5400 \times 100}{12 \times 3}

    3. Simplify:

      • 12×3=3612 \times 3 = 36
      • 5400×100=540,0005400 \times 100 = 540,000
      • 540,00036=15,000\frac{540,000}{36} = 15,000
    4. Final Answer:

      Principal (P) = ₹15,000\text{Principal (P) = ₹15,000}