Question

The simple interest on a principal amount (in ₹) is ₹378 for a period of 5 years at the rate of 9% per annum. The principal amount (in ₹) is:

• A. 840
• B. 844
• C. 845
• D. 837

Answer 1

Answer:

A. 840

We use the Simple Interest formula:

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

Given:

• SI = 378

• R = 9%

• T = 5 years

Substitute the values:

$378 = \frac{P \times 9 \times 5}{100}$
$378 = \frac{45P}{100}$

Multiply both sides by 100:

$37800 = 45P$

$P = \frac{37800}{45}$
$P = 840$

Principal Amount = ₹840