Q.How much money will become ₹360 in 5 years at an annual simple interest rate of 4%? (a) ₹ 300 (b) ₹ 320 (c) ₹ 280 (d) ₹ 340
Answer: A
Let’s assume the principal amount \((p)=x \) rupees
Time \((t)= 5\) years
Rate of interest \((r)= 4\%\)

\(\therefore\) Total interest = \(\cfrac{ptr}{100}\)
= \(\cfrac{x\times 5 \times 4}{100}\)
= \(\cfrac{x}{5}\)
According to the given condition, \(x+\cfrac{x}{5}=360\)
or, \(\cfrac{5x+x}{5}=360\)
or, \(\cfrac{6x}{5}=360\)
or, \(x=360\times\cfrac{5}{6}=300\)
\(\therefore\) The principal amount is 300 rupees.
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