The simple interest on a principal amount (in Rs. ) is Rs. 540 for a period of 4 years at the rate of 2% per annum. The principal amount (in Rs. ) is:

Correct option is C

Given:
Simple Interest (SI) = ₹540
Time (T) = 4 years
Rate of Interest (R) = 2% per annum
Formula Used:
​$$SI = \frac{P \times R \times T}{100}\\\ \\P = \frac{SI \times 100}{R \times T}$$​​
Solution:
​$$\Rightarrow P = \frac{540 \times 100}{2 \times 4} \\\ \\\Rightarrow P = \frac{54000}{8}\\\ \\\Rightarrow P = 6750$$​​