Answer:
Principal, P = Rs. 2000
Step-by-step explanation:
Given the following data;
- Simple interest (S.I) = Rs. 120
- Interest rate, R = 2%
- Time, T = 3 years
To find how much balance (principal) is to be saved, we would use the formula;
[tex] S.I = \frac {PRT}{100} [/tex]
Where;
- S.I is the simple interest.
- P is the principal.
- R is the interest rate.
- T is the time measured in years.
Making "P" the subject of formula, we have;
[tex] P = \frac {100S.I}{RT} [/tex]
Substituting the values into the formula, we have;
[tex] P = \frac {100 * 120}{2 * 3} [/tex]
[tex] P = \frac {12000}{6} [/tex]
Principal, P = Rs. 2000
Therefore, you'll have to save up to Rs. 2000.
