Multiple choice

The simple interest on a principal for 6 months at an interest rate of 10% per annum is Rs. 100. What is the principal?

  1. Rs.1000

  2. Rs.2000

  3. Rs.1500

  4. Rs.2500
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest formula: SI = P × R × T / 100. Given SI = 100, R = 10%, T = 6 months = 0.5 years. So 100 = P × 10 × 0.5 / 100 = P × 5 / 100. Therefore P = 100 × 100 / 5 = Rs. 2000. Note: time must be in years.

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