A sum, when invested at 10% simple interest per annum, amounts to ₹4800 after 2 years. What is the simple interest (in ₹) on the same sum at the same rate of interest in 2 years?

Correct option is A

Given:

Amount (A) = ₹4800

Rate of interest (R) = 10% per annum

Time (T) = 2 years

Find: Simple Interest (SI)

Formula Used:

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

Relation between Amount and Principal: A = P + SI

Solution:

SI = $$\frac{P \times R \times T}{100} = \frac{P \times 10 \times 2}{100} = \frac{20P}{100} = \frac{P}{5}$$​

A = P + $$\frac{P}{5} = \frac{6P}{5}$$​ = 4800

P =$$\frac{4800 \times 5}{6} = 4000$$​

SI =$$\frac{P \times R \times T}{100} = \frac{4000 \times 10 \times 2}{100} = 800$$​