A sum fetches ₹2,400 as interest in 5 years at 8% per annum. What is the principal?
Show answer & explanation
Correct answer: A
Explanation
Simple Interest (SI) = ₹2400
Rate (R) = 8% per annum
Time (T) = 5 years
Simple Interest = (P × R × T)/100
2400 = (P × 8 × 5)/100
2400 = (40P)/100
2400 = 2P/5
P = (2400 × 5)/2 = ₹6000