Question

An interest of ₹ 111 was earned on a sum lent at 10% per annum for 2 years. What was the sum?

• A. ₹ 444
• B. ₹ 505
• C. ₹ 524
• D. ₹ 555

Answer 1

The correct option is D ₹ 555

Simple interest earned (S.I)= ₹ 111
Rate of interest = 10% per annum
Time = 2 years

To find: Principal (P).

$\text{Simple interest, S.I =}\frac{P\times R\times T}{100}$

$\Rightarrow 111=\frac{P\times 10\times 2}{100}$

$\Rightarrow 111\times 100=P\times 10\times 2$

$\Rightarrow P=\frac{111\times 100}{10\times 2}$

$\Rightarrow P=₹555$