An amount invested fetched a total simple interest of ₹4,050 at the rate of 9% per annum in 5 years. What is the amount invested (in ₹)?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 9,000.
Simple Interest (SI) = (Principal (P) × Rate (R) × Time (T)) / 100
Given:
Simple Interest (SI) = ₹4,050
Rate (R) = 9% per annum
Time (T) = 5 years
We need to find the Principal (P).
Rearranging the formula to solve for P:
P = (SI × 100) / (R × T)
Substituting the given values:
P = (4050 × 100) / (9 × 5) P = 405000 / 45 P = 9000
Therefore, the amount invested is ₹9,000.