Question

The simple interest on a certain sum of money for 4 years at $12\%$ per annum is ₹600. Find the principal amount.

• A. ₹1250
• B. ₹1500
• C. ₹800
• D. ₹1200

Answer 1

The correct option is A ₹1250

Given
Simple interest = ₹600
Interest rate (R) = 12% per annum
Time period (T) = 4 years

Let the sum of money or principal be P.

Simple interest = $\frac{P\times R\times T}{100}$
On substituting the values in the above equation we get:

600 = $\frac{P\times 12\times 4}{100}$

$\Rightarrow$P $=$ $\frac{600\times 100}{12\times 4}$

$=$ $\frac{50\times 100}{4}$

$=$ ₹1250