Rakib obtained an amount of Tk. 8300 as simple interst on a certain amount at 8 p.c.p.a. after 5 years. What is the amount invested by Rakib?

Question: Rakib obtained an amount of Tk. 8300 as simple interest on a certain amount at 8 p.c.p.a. after 5 years. What is the amount invested by Rakib?

Solution:
Suppose, Principal = Tk. 100
Then interest for 5 years at 8% = 5 × 8 = Tk. 40.

Now,
If interest is 40 taka then Principal = 100
∴ If interest is Tk. 8300 then Principal = (8300 × 100)/40 Tk.
= 20750 Tk.