The simple interest on a certain sum of money is ₹ 2275 at 13% per annum in 5 years. Find the sum of money.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. ₹ 3500.
Simple Interest (SI) = P × R × T / 100
P is the principal (the sum of money),
R is the rate of interest per annum = 13%
T is the time in years = 5 years
SI is the simple interest = ₹2275
⇒ 2275 = P × 13 × 5 / 100
Simplifying:
⇒ 2275 = 65 × P / 100
⇒ 227500 = 65P
⇒ P = 227500 / 65
⇒P = ₹3500