Question

Simple Interest on a certain sum at $10\%$ per annum for $1$ year is ₹2,500. Find the principal.

• A. ₹2,000
• B. ₹25,000
• C. ₹27,500
• D. Principal ₹5,500

Answer 1

The correct option is B ₹25,000

Let the principal be $P$.

Given, Rate $=10\%$

Time $=1$ year

Simple Interest ₹2,500

We know that, Simple Interest $=\frac{\text{P}\times \text{T}\times \text{R}}{100}$

$\Rightarrow 2,500=\frac{P\times 1\times 10}{100}$

$\Rightarrow P=\frac{2500\times 100}{10\times 1}=₹25,000$