Question

The simple interest on a principal amount (in F) is $318 for a period of 2 years at the rate of 6% per annum. The principal amount (in &) is:

• A. 2651
• B. 2650
• C. 2655
• D. 2656

Answer 1

Answer:

B. 2650

Simple Interest (SI) = 318
Rate (R) = 6% per annum
Time (T) = 2 years

Using the formula:
$\text{SI} = \frac{P \times R \times T}{100}$

$318 = \frac{P \times 6 \times 2}{100}$

$318 = \frac{12P}{100}$

$P = \frac{318 \times 100}{12} = 2650$

The principal amount = 2650