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A sum, when invested at 10% simple interest per annum, amounts to ₹2640 after 2 years. What is the simple interest (in ₹) on the same sum at the same
Question

A sum, when invested at 10% simple interest per annum, amounts to ₹2640 after 2 years. What is the simple interest (in ₹) on the same sum at the same rate of interest in 1 year?

A.

₹220

B.

₹110

C.

₹880

D.

₹440

Correct option is A

Given:

Amount after 2 years = ₹2640

Rate of interest = 10%

Time = 2 years

Formula Used:

Simple Interest (SI) = P×R×T100\frac{P \times R \times T}{100}​​

Where P is the principal, R is the rate and T is the time.

Principal = Amount - SI (rearranged as needed)

Solution:
Let the principal be P

SI for 2 years = P×10×2100\frac{P \times 10 \times 2}{100}​​

=P×20100= \frac{P \times 20}{100}​​

=P5= \frac{P}{5}​​

Amount = P + P5\frac{P}{5} ​​

6P5=2640\frac{6P}{5} = 2640​​

P = 2640×56 \frac{2640 \times 5}{6}​ = ₹2200

Now, SI for 1 year:

SI =2200×10×1100 \frac{2200 \times 10 \times 1}{100}​ = ₹220

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