A sum at simple interests at 13 ½ % per annum amounts to Rs.2502.50 after 4…

Step-by-Step Solution

To find the sum (Principal), we use the relationship between Amount, Principal, and Simple Interest.

1. Identify the variables:

   • Amount (A) = 2502.50

   • Rate (R) = 13 1/2% = 13.5%

   • Time (T) = 4 years

2. Use the formula for Amount:

   • Amount = Principal + Simple Interest

   • A = P + (P * R * T) / 100

   • A = P * (1 + (R * T) / 100)

3. Calculate the value inside the parenthesis:

   • R * T = 13.5 * 4 = 54

   • 1 + 54 / 100 = 1 + 0.54 = 1.54

4. Solve for Principal (P):

   • 2502.50 = P * 1.54

   • P = 2502.50 / 1.54

   • P = 1625