Question

What sum (in ₹) will earn a simple interest of ₹240 in 2 years at 16% per year rate of interest?

• A. 1500
• B. 1000
• C. 750
• D. 375

Answer 1

Answer:

C. 750

Use the simple interest formula:

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

Given:
$SI = 240, R = 16$
$240 = \frac{P \times 16 \times 2}{100}$
$240 = \frac{32P}{100}$
$240 = 0.32P$
$P = \frac{240}{0.32} = 750$