Given the Principal becomes Rs 17,000
Let the principle initially be P
Rate of Interest r = 12 % Per annum
Time n = 3 years
According to the problem given I = 17000 – P
= \(\frac{P\times3\times12}{100}\)
= 17000 = \(\frac{36}{100}\) p + p
17000 = p(\(\frac{36}{100}\) + 1)
17000 = p(\(\frac{136}{100}\))
p = \(\frac{17000\times100}{136}\)
= 12,500
∴ Principal P = Rs 12,500