Correct Answer - Option 3 : Rs.5,250
Given:
Time = 5 years
Amount = Rs.10,500
Rate of Simple interest = 20 percent
Concept:
Simple Interest (S.I) = (P × R × T)/100
Here,
P = Principal
R = Rate
T= Time (in years)
Amount (A) = P + S.I
Here,
P = Principal
S.I = Simple Interest
Calculation:
We know that –
S.I = (P × R × T)/100 ----(I)
Now,
Put all the given value in equation (1) then we get
S.I = (P × 20 × 5)/100
⇒ (100 × P)/100
⇒ 100P/100 = p
Now,
A = P + S.I ----(II)
Put all the given Value in equation (II) then we get
10500 = P + P
⇒ 2P = 10500
⇒ P = Rs.5,250
∴ The Principal Amount Invested by Amar is Rs.5,250