A sum when invested at $$12\frac{1}{2}\%$$​ simple interest per annum amounts to ₹8250 after 2 years. The simple interest is:

Correct option is C

Given:

Amount becomes ₹8250

Time = 2 years

Rate of interest = $$12\frac{1}{2}\% = \frac{25}{2}\%$$​​

Formula Used:

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

Amount = Principle + Interest

Solution:

Let Principle be P

Then

SI =$$\frac{P\times \frac{25}{2}\times 2}{100}$$​​

SI =$$\frac{P}{4}$$​​

Amount =$$P + \frac{P}{4}$$​

​$$8250 = \frac{5P}{4}$$​​

​$$P = 8250\times\frac{4}{5} = ₹6,600$$​​

Simple interest = 8250 - 6600 = ₹1,650