The simple interest on a principal amount (in Rs. ) is Rs. 524 for a period of 2 years at the rate of 5% per annum. The principal amount (in Rs. ) is:

Correct option is A

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

$$524 = \frac{P \times 5 \times 2}{100} \\\ \\524 = \frac{10P}{100} \\\ \\\Rightarrow 524 = \frac{P}{10} \\\ \\P = 524 \times 10 = 5240$$​​