Question

The simple interest on a principal amount (in INR) is INR 824 for a period of 4 years at the rate of 8% per annum. The principal amount (in INR) is:

• A. 2577
• B. 2573
• C. 2571
• D. 2575

Answer 1

Answer:

D. 2575

We use the simple interest formula:
$\text{SI} = \frac{P \times R \times T}{100}$

Given:
SI = 824
Rate (R = 8%) per annum
Time (T = 4) years

Substitute values

$824 = \frac{P \times 8 \times 4}{100}$
$824 = \frac{32P}{100}$
$P = \frac{824 \times 100}{32}$
$P = 2575$

Principal amount = INR 2,575