Question

Simple Interest on a certain sum at $10\%$ per annum for $10$ years is ₹ 25,000. Find the principal and amount.

• A. Principal $=\text{Rs.}50,000$
• B. Amount $=\text{Rs.}50,000$
• C. Amount $=\text{Rs.}25,000$
• D. Principal $=\text{Rs.}25,000$

Answer 1

Answer: (B), (D)

The correct options are
B

Amount $=\text{Rs.}50,000$

D

Principal $=\text{Rs.}25,000$

Let the principal be $P$.

Given, Rate $=10\%$

Time $=10$ years

Simple Interest = ₹ 25,000

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

$\Rightarrow 25000=\frac{P\times 10\times 10}{100}$

$\Rightarrow P=\frac{25000\times 100}{10\times 10}=$₹ 25,000

Since, Amount $=$ Principal $+$ Simple Interest

$\Rightarrow$ Amount $=25000+25000=$ ₹ 50,000