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    A sum, when invested at 10% simple interest per annum, amounts to ₹9360 after 3 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 ₹9360 after 3 years. What is the simple interest (in ₹) on the same sum at the same rate in 1 year?

    A.

    360

    B.

    2880

    C.

    720

    D.

    1440

    Correct option is C

    Given:

    Amount (A) after 3 years = ₹9360

    Rate of Simple Interest (R) = 10% per annum

    Time (T) = 3 years

    Formula Used:

    Simple Interest (SI) = (P×R×T)100\frac{(P \times R \times T)}{ 100}​, where P is the principal.

    Amount (A) = P + SI

    Solution:

    Let the principal be P.

    9360 = P + (P×10×3)100\frac{(P \times 10 \times 3)}{ 100}​​

    9360 = P + 0.3P => 9360 = 1.3P

    P = 93601.3\frac{9360 }{1.3 }​= ₹7200

    SI for 1 year = (7200×10×1)100\frac{(7200 \times 10 \times 1)}{ 100}​ = ₹720

    Therefore, the simple interest on the same sum at the same rate in 1 year is ₹720.

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