The simple interest on a principal amount (in ₹) is ₹714 for a period of 3 years at the rate of 7% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 3400.
(SI) = (P × R × T) ÷ 100
SI = 714, R = 7%, T = 3 years
⇒ 714 = (P × 7 × 3) ÷ 100
⇒ 71400 = (21 × P)
⇒ P = 71400 ÷ 21 = 3400