Question

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

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

Answer 1

The correct option is C

$₹450$

Given that,

• SI $=$ $₹126$
• Time $=$ $2$ years
• Rate $=$$14\%$
• Principal $=$ ?

Then, we know the formula of Simple interest

Simple interest , $S.I=\frac{P\times T\times R}{100}$

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

$P=\frac{12600}{14\times 2}$

$P=Rs450$

Therefore, the sum or principal is $Rs450$

Hence, the correct option is C.