The simple interest on a principal amount (in ₹) is ₹318 for a period of 2 years at the rate of 6% per annum. The principal amount (in ₹) is:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 2650.
Simple Interest (SI) = ₹318
Time (T) = 2 years
Rate (R) = 6% per annum
SI = (P × R × T) / 100
318 = (P × 6 × 2) / 100
318 = (12P) / 100
12P = 318 × 100 = 31800
P = 31800 ÷ 12 = ₹2650