Question

An amount invested at 12% simple interest amounts to Rs.6200 in 2 years. The principal amount is

• A. Rs.5000
• B. Rs.5200
• C. Rs.5400
• D. Rs.5600

Hint:

Use $A = P(1 + \frac{RT}{100})$ directly when amount is given in simple interest problems.

Answer 1

The Correct Option is A

Concept: Simple Interest Formula: \[ A = P \left(1 + \frac{RT}{100}\right) \] Explanation: Given: Amount $A = 6200$, Rate $R = 12\%$, Time $T = 2$ years \[ 6200 = P \left(1 + \frac{12 \times 2}{100}\right) \] \[ 6200 = P (1 + 0.24) = 1.24P \] \[ P = \frac{6200}{1.24} = 5000 \]