Question

An amount of money fetches a simple Interest of Rs.4,320 at the rate of 4 percent per annum at the end of 6 years. What is the principal amount?

• A. $Rs.24,000$
• B. $Rs.12,000$
• C. $Rs.18,000$
• D. $Rs.20,000$

Answer 1

The correct option is C $Rs.18,000$

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

$⟹4320=\frac{P\times 4\times 6}{100}$

$⟹P=\frac{4320\times 100}{24}$

$⟹P=Rs.18000$

$\therefore$ Principal Amount $=Rs18000$