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If the simple interest earned at 10 percent per annum is Rs 1000 at the end of 5 years, then what should be the principal amount?
Question

If the simple interest earned at 10 percent per annum is Rs 1000 at the end of 5 years, then what should be the principal amount?

A.

Rs 2000

B.

Rs 2500

C.

Rs 1000

D.

Rs 1500

Correct option is A

Given:

Simple interest earned in 5 years at 10% per annum is 1000
Formula Used:
Simple Interest=Principal×Rate×Time100\text{Simple Interest} = \frac{\text{Principal} \times \text{Rate} \times \text{Time}}{100}
Solution:
1000=Principal×10×5100Principal=20001000 = \frac{\text{Principal} \times 10 \times 5}{100}\\\text{Principal} = 2000​​

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