The simple interest on a principal amount (in ₹) is ₹824 for a period of 4 years at the rate of 8% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 2575.
SI = (P × R × T) / 100
824 = (P × 8 × 4) / 100
824 = (32P) / 100
Hence P,
P = (824 × 100) / 32
P = 82400 / 32
P = ₹2575