The simple interest on a principal amount (in ₹) is ₹378 for a period of 5 years at the rate of 9% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 840.
Simple Interest (SI) = (P × R × T) / 100
378 = (P × 9 × 5) / 100
378 = (45P) / 100
45P = 378 × 100 = 37800
P = 37800 ÷ 45 = 840