Multiple choice

An amount of money fetches a simple Interest of Rs.4,320 at the rate of 4 percent per annum at the end of 6 years. What is the principal amount?

  1. $Rs.24,000$
  2. $Rs.12,000$
  3. $Rs.18,000$
  4. $Rs.20,000$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SI = (P * R * T) / 100. 4320 = (P * 4 * 6) / 100. 4320 = 24P / 100. P = 432000 / 24 = 18000.

AI explanation

Using the simple interest formula, Principal = (Simple Interest * 100) / (Rate * Time). Substituting the given values gives Principal = (4320 * 100) / (4 * 6). The denominator becomes 24, so the principal is 432000 / 24. The principal amount is Rs.18,000.

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