Multiple choice

What is the sum of money that amounts to Rs. 12,000 in 2 years at the simple rate of interest of 10% per annum?

  1. Rs. 1,000

  2. Rs. 11,000

  3. Rs. 10,000

  4. Rs. 12,000

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest formula is A = P(1 + rt/100). Here, 12000 = P(1 + (10*2)/100) = P(1 + 0.2) = 1.2P. Thus, P = 12000 / 1.2 = 10000.

AI explanation

Using the simple interest formula A equals P plus (P times R times T divided by 100), we know the amount A is 12000, the rate R is 10 percent, and the time T is 2 years. Substituting these values gives 12000 equals P plus (P times 10 times 2 divided by 100). This simplifies to 12000 equals P plus 0.2P, or 12000 equals 1.2P. Solving for P gives P equals 12000 divided by 1.2, which results in Rs. 10,000.

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