The simple interest on a principal amount (in ₹) is ₹487 for a period of 2 years at the rate of 5% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 4870
Simple Interest = (P × R × T) ÷ 100
487 = (P × 5 × 2) ÷ 100
487 = (10P) ÷ 100
P = (487 × 100) ÷ 10
P = 4870