What sum will amount to ₹8800 in 2 years at 10% simple interest per annum?
Show answer & explanation
Correct answer: B
Explanation
Given:
Amount (A) = ₹8800
Interest rate (R) = 10% per annum
Time (T) = 2 years
By the formula:
A = P(1 + RT/100)
8800 = P(1 + 10 × 2/100)
8800 = P(1 + 20/100)
8800 = P(1.2)
P = 8800 / 1.2
P = ₹7333.33 (approximately)