A sum, when invested at 10% simple interest per annum, amounts to ₹3360 after 2 years. What is the simple interest (in ₹) on the same sum at the same rate of interest in 1 year?

Correct option is D

Given:

Amount after 2 years = ₹3360

Rate of interest = 10% per annum

Time = 2 years

Formula Used:

Amount = Principal + Simple Interest

SI = $$\frac{P \times R \times T}{100}$$​​

Solution:

Let the principal be P

Now, 

3360 = P + $$\frac{P \times 10 \times 2}{100}$$​​

3360 = $$P \left(1 + \frac{20}{100}\right)$$​​

3360 = $$P \times 1.2$$​​

P = $$\frac{3360}{1.2} = 2800$$​​

Now, SI for 1 year:

SI = $$\frac{2800 \times 10 \times 1}{100}$$​= 280

Thus, The simple interest for 1 year is ₹280