​A sum becomes Rs.26,400 after 2 years at simple interest of 5% per annum. Find the sum.

Correct option is B

Given:

A sum becomes Rs.26,400 after 2 years.

Rate =  5% per annum

Concept Used:

If rate of interest is x  in simple interest then total interest after y years is $$x\times y$$​.

Solution:

Let amount  = Rs100

Rate after  2 years = $$5\%\times2 = 10\%$$

Total amount after 2 years = amount + interest = 100 + 10% of 100 = 110

According to question

110 = Rs26400

So, 100 =$$\frac{26400\times100}{110}$$ = Rs24000

Total amount invested = Rs24000