What sum of money (in ₹) will yield ₹740 as simple interest in 2 years at 5% per annum?
- ((a))
6900
- ((b))
7400
- ((c))
7600
- ((d))
7800
Show Answer
7400

Shortcut Trick
Effective Simple Interest Rate = Rate × Time = 5% × 2 = 10%.
Given that 10% of the Principal = ₹740.
So, 100% (the total Sum) = 740 × 10 = ₹7400.
∴ The correct answer is ₹7400.

Alternate Method
Given:
⇒ Simple Interest (SI) = ₹740
⇒ Time (T) = 2 years
⇒ Rate (R) = 5% per annum
Formula Used:
⇒ SI = (P × R × T) ÷ 100

Calculations:
⇒ 740 = (P × 5 × 2) ÷ 100
⇒ 740 = (P × 10) ÷ 100
⇒ 740 = P ÷ 10
⇒ P = 740 × 10
⇒ P = 7400
∴ The correct answer is ₹7400.

Additional Information
Simple Interest (SI) Properties
Simple interest is calculated only on the Principal amount. For any period, the interest remains constant if the rate and principal are unchanged.
Total Amount Formula
The total Amount (A) received after the time period is given by A = Principal (P) + Simple Interest (SI).
Rate and Time relationship
If the Rate is doubled and the Time is halved, the Simple Interest remains the same as the product R × T remains constant.


















































