The simple interest on a principal amount (in ₹) is ₹540 for a period of 4 years at the rate of 2% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 6750.
Simple Interest = (Principal × Rate × Time) / 100
⇒ 540 = (P × 2 × 4) / 100
⇒ 540 = (8P) / 100
⇒ P = (540 × 100) / 8
⇒ P = ₹6,750