Q.If the total amount becomes 966 rupees at an annual simple interest rate of 3% in 5 years, the principal amount will be - (a) 480 rupees (b) 408 rupees (c) 404 rupees (d) 840 rupees
Answer: D
Let the principal amount \((p) = x\) rupees
Time \((t) = 5\) years
Rate of interest \((r) = 3\% \)
∴ Interest \((I) = \cfrac{ptr}{100} \)
\( = \cfrac{x × 5 × 3}{100} \) rupees \( = \cfrac{3x}{20} \) rupees

\( ∴ x + \cfrac{3x}{20} = 966 \)
Or, \( \cfrac{23x}{20} = 966 \)
Or, \( x = \cfrac{966 × 20}{23} \)
Or, \( x = 840 \)
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