What sum of money (in ₹) will yield ₹880 as simple interest in 2 years at 5%…
2026
What sum of money (in ₹) will yield ₹880 as simple interest in 2 years at 5% per annum?
Answer: D. 8,800 — Concept: Under simple interest the interest is calculated on the original principal alone for the entire period, so SI = P × R × T / 100, where P is the…
- A.
9,000
- B.
8,300
- C.
9,200
- D.
8,800
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Show answer & explanation
Correct answer: D
Concept: Under simple interest the interest is calculated on the original principal alone for the entire period, so SI = P × R × T / 100, where P is the principal, R the rate per cent per annum and T the time in years. Because the principal never grows, this relation is a plain proportion, and it can be rearranged to recover any one of the four quantities from the other three: P = 100 × SI / (R × T).
Application:
List the given quantities and the unknown: SI = ₹880, R = 5% per annum, T = 2 years, and the principal P is to be found.
Substitute them into SI = P × R × T / 100, which gives 880 = P × 5 × 2 / 100.
Simplify the numerical factor on the right: 5 × 2 / 100 = 1/10, so the equation becomes 880 = P / 10.
Multiply both sides by 10 to isolate the principal: P = 880 × 10 = 8800.
Cross-check: putting P = ₹8,800 back into the formula gives 8800 × 5 × 2 / 100 = ₹880, exactly the interest stated in the question. The same result follows from a percentage reading of the formula — 2 years at 5% per annum is a total of 10% of the principal, and ₹880 is 10% of ₹8,800. Hence the required sum of money is ₹8,800.