Amar invested a certain amount for 5 years and he got back an amount Rs. 10750. If the rate of simple interest is 30 percent then what is the principal amount invested by Amar?

- Rs. 4500
- Rs. 4000
- Rs. 4800
- Rs. 4300
- None

Option 4 : Rs. 4300

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**Given:**

Time = 5 years

Amount = Rs. 10750

Rate of Simple interest = 30 percent

**Formula:**

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 ….…… (1)

Now,

Put all the given value in equation (1) then we get

S.I = (P × 30 × 5)/100

⇒ (150 × P)/100

⇒ 150P/100

⇒ 1.5P

**∴**** S.I = 1.5P**

Now,

A = P + S.I …….. (2)

Put all the given Value in equation (2) then we get

10750 = P + 1.5P

⇒ 2.5P = 10750

⇒ P = 10750/2.5

⇒ 4300

**∴**** The Principal Amount Invested by Amar is Rs. 4300**

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