The simple interest on a principal amount (in ₹) is ₹284 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. 2840.
Simple Interest (SI) = ₹284
Rate (R) = 5%
Time (T) = 2 years
SI = (P × R × T) / 100
284 = (P × 5 × 2) / 100
284 = (10P) / 100
Multiply both sides by 100:
28400 = 10P
P = 28400 / 10 = ₹2840