Question

What sum of money will produce ₹28600 as interest in 1 year at 2.5% per year simple interest ?

• A. ₹352000
• B. ₹340000
• C. 360500
• D. 382000

Answer 1

The correct option is A ₹352000

Formula for simple interest is

$\Rightarrow$ Simple Interest $=\frac{\text{P}\times \text{r}\times \text{t}}{100}$

Here, I = ₹28600, r = 2.5%, t = 1 year

Therefore,
$28600=\frac{P\times 1\times 2.5}{100}$

2860000 = $P\times 2.5$

$\frac{2860000}{2.5}=P$

P = 11,44,000

Hence, the required principal is ₹11,44,000