The simple interest on a sum of money for 5 years at 6% per annum is Rs.75. Find the sum.

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  1. Rs.120
  2. Rs. 150
  3. Rs.220
  4. Rs.250

Answer (Detailed Solution Below)

Option 4 : Rs.250
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Detailed Solution

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Given:

Simple Interest (SI) = ₹75

Time (T) = 5 years

Rate (R) = 6% per annum

Formula Used:

SI = (P × R × T) / 100

Where, P = Principal

Calculations:

75 = (P × 6 × 5) / 100

⇒ 75 = (30 × P) / 100

⇒ 75 = 0.3 × P

⇒ P = 75 / 0.3 = 250

∴ The sum is ₹250.

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