Question

A sum of rupees fetches simple interest Rs.2400 for 2 years. If the rate of interest is 12%, then the principal amount is

• A. Rs.12000
• B. Rs.10000.
• C. Rs.8000
• D. Rs.10200

Hint:

A simple interest rate of 12% per year for 2 years means total interest accumulated is:
\[ 12\% \times 2 = 24\% \text{ of the principal} \]
If 24% of the principal is Rs.2400, then 1% is Rs.100.
Therefore, 100% (the entire Principal) must be $100 \times 100 = \text{Rs.}10000$.

Answer 1

The Correct Option is B

Step 1: Recall the Simple Interest formula.
SI = (P x R x T) / 100, where P = Principal, R = Rate%, T = Time in years.
Step 2: Substitute the known values.
\[ 2400 = \frac{P \times 12 \times 2}{100} = \frac{24P}{100} \]
Step 3: Solve for Principal.
\[ P = \frac{2400 \times 100}{24} = \frac{240000}{24} = 10000 \] \[ \boxed{Rs.10000} \]