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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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