Word Problem 6

Simple & Compound Interest 0

Problem 6: A man invests a certain amount in a project at 4% per anum simple interest. After 5 years he gets Rs 3600. What amount he invested?

Solution:

Suppose investment is ‘x” i-e initial amount P;

$P = x Rs$

Time Period of investment;

$T= 5years$

Rate of interest R;

$R = 4% annual$

We know relation or formula for interest;

$I = \frac{P\times R\times T}{100} ----------(1))$

Put values;

$I =\frac{ x \times 4 \times 5}{100}$

$\Rightarrow I =\frac{ 20x}{100}$

Also we know ;

$A = P+I$

But $A = 3600$

Put values of ‘A’, ‘P’ and ‘I”

$3600= x+ \frac{20x}{100}$

Solving for ‘x’

$\Rightarrow 3600= \frac{100x+20x}{100}$

$\Rightarrow 3600= \frac{120x}{100}$

$\Rightarrow x = \frac{3600\times 100}{120}$

$\Rightarrow x = 3000$

So, he invested Rs 3000/-

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