A sum, when invested at 10% simple interest per annum, amounts to ₹9600 after 2 years. What is the simple interest (in ₹)on the same sum at the same rate in 1 year?

Correct option is A

Given:

Amount (A) after 2 years = ₹9600

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

Time (T) = 2 years

Formula Used:

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

Amount (A) = P + SI

Solution:

Let the principal be P.

9600 = P +$$\frac{(P \times 2 \times 10)}{ 100}$$​​

9600 = P + 0.2P => 9600 = 1.2P

P =$$\frac{9600 }{1.2}$$= ₹8000

SI for 1 year =$$\frac{(8000 \times 10 \times 1)}{ 100}$$ = ₹800

Therefore, the simple interest on the same sum at the same rate in 1 year is ₹800. 

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