What sum (in ₹) will earn a simple interest of ₹360 in 2 years at a 4% per year rate of interest?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2, i.e. 4500.
Simple Interest = (Principal × Rate × Time) ÷ 100
360 = (P × 4 × 2) ÷ 100
360 = (8 × P) ÷ 100
P = 360 × 100 ÷ 8
P = 36000 ÷ 8 = 4500 ₹