Question

# _________ is the principal, if £125 is collected for 5 years by lending at 7% per annum.

- 12.5
- 125.4
- 357.14
- 60.01

Hint:

### Obtain the Principle Amount form the given data by substituting the given data in the Simple Interest formula.

## The correct answer is: 357.14

### I = £125, P = ? , T = 5 years, R = 0.07

I = PTR

125 = P × 5 × 0.07

P = = £357.14

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