A sum, when invested at 10% simple interest per annum, amounts to Rs.2400 after 2 years. What is the simple interest (in Rs.) on the same sum at the same rate of interest in 2 years?

Correct option is A

Given:

Amount after 2 years = ₹2400

Rate = 10% per annum

Time = 2 years

Formula Used:

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

Amount = Principal + SI

Solution:

Now, 

Amount = $$P(1 + \frac{10 \times 2}{100})$$​​

2400 = $$P \times 1.2$$​​

2400 = 1.2P

P = $$\frac{2400}{1.2}$$​ = 2000

Now, 

SI = 2400 - 2000 = ₹400