A sum of money, when invested at the rate of 15% per annum at simple interest, amounts to ₹ 26,000 in 2 years. What is the simple interest that accrued during these 2 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹ 6,000
Formula used:
Simple interest = PRT/100 ---- (1)
Amount = SI + P
Where SI = Simple interest, P = principal, R = rate and T = time
Calculations:
According to the question;
⇒ 26000 = P + (P × 15 × 2)/100
⇒ 26000 = P + 3P/10
⇒ 26000 = 13P/10
⇒ P = 20000
Hence, SI = 26000 - 20000 = 6000