Question

The sum which will earn a simple interest of $Rs.126$ in $2$ years at $14\%$ per annum is

• A. $Rs.394$
• B. $Rs.395$
• C. $Rs.450$
• D. $Rs.540$

Answer 1

The correct option is C $Rs.450$

$Interest=Rs.126,time=2years,R=14\%p.a.$

Now,

$Interest=\frac{P\times R\times T}{100}$

$\therefore \frac{P\times R\times T}{100}=126$

$\Rightarrow P=\frac{126\times 100}{14\times 2}$

$\Rightarrow P=Rs.450$