Question

The simple interest on a principal amount (in ₹) is ₹360 for a period of 4 years at the rate of 2% per annum. The principal amount (in ₹) is:

• A. 4490
• B. 4501
• C. 4508
• D. 4500

Answer 1

Answer:

D. 4500

Use the simple interest formula:

$\text{SI} = \frac{P \times R \times T}{100}$

Given:

• SI = 360

• R = 2%

• T = 4 years

$360 = \frac{P \times 2 \times 4}{100}$

$360 = \frac{8P}{100}$

360 = 0.08P
$\Rightarrow P = \frac{360}{0.08} = 4500$

Final Answer: ₹4500