Question

The simple interest on a principal amount (in ₹) is ₹524 for a period of 2 years at the rate of 5% per annum. The principal amount (in ₹) is:

• A. 5240
• B. 5239
• C. 5249
• D. 5234

Answer 1

Answer:

A. 5240

Use the simple interest formula:

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

Given:
SI = 524, R = 5%, T = 2 years

$524 = \frac{P \times 5 \times 2}{100}$

$524 = \frac{10P}{100} = \frac{P}{10}$

$P = 524 \times 10 = 5240$
Final Answer:

₹5240