The simple interest on a principal amount (in Rs. ) is Rs. 360 for a period of 4 years at the rate of 2% per annum. The principal amount (in Rs. ) is:

Correct option is D

Given:

Simple Interest (SI) = Rs. 360
Time = 2 years
Rate = 4% per annum
Formula Used:
$$\text{Simple Interest (SI)} = \frac{P \times R \times T}{100} \\\\$$​​
Solution:$$524 = \frac{P \times 5 \times 2}{100} \\\\524 = \frac{10P}{100} \\\\\Rightarrow 524 = \frac{P}{10} \\\\P = 524 \times 10 = 5240$$

$$360 = \frac{P \times 4 \times 2}{100} \\\\360 = \frac{8P}{100} \\\\\Rightarrow 360= \frac{4P}{5} \\\\P = 4500$$