Correct Answer - Option 3 : Rs.5000
Given:
Amount, A = Rs 7000
Rate, R = 8%
Time, T = 5 years
Concept used:
Amount, A = P + SI
Simple interest, SI = PRT/100
Calculation:
7000 = P + P × 5 × 8/100 = 14P/10
P = 7000 × (10/14) = Rs 5000
Principal amount is Rs 5000.