The simple interest on a certain sum of money for 2 years at 6% per annum is ₹1,200. What is the sum of money?
Show answer & explanation
Correct answer: D
Explanation
given :
Rate (R) = 6% per annum
Time (T) = 2 years
Simple Interest (SI) = Rs 1200
According to the formula:
SI = (P × R × T) / 100
1200 = (P × 6 × 2) / 100
1200 = (12P) / 100
1200 = 0.12P
P = 1200 ÷ 0.12
P = 10000
Amount = Rs 10000