Question

If the simple interest on a certain sum for 2 years at the rate of 5% per annum is ₹4000, then the sum is

(a) ₹46,000
(b) ₹44,000
(c) ₹40,000
(d) ₹48,000

Answer 1

We know, $I=\frac{P\times T\times R}{100}$

It is given that,
T = 2 years
R = 5%
I = ₹4000

Then,
$$\begin{gathered} 4000=\frac{P\times 5\times 2}{100} \\ \Rightarrow 4000=\frac{10P}{100} \\ \Rightarrow P=40000 \end{gathered}$$

Thus, P = ₹40,000

Hence, the correct option is (c).