Correct Answer - Option 1 : Rs. 1000
Given:
The rate of interest = 10% per annum
Time = 6 years
P - S.I = Rs. 400
Formula Used:
S.I = (PRT)/100
Where,
S.I = Simple interest
P = Principal
R = Rate of interest
T = Time duration
Calculation:
According to the question, we have
(P - 400) = (P × 10 × 6)/100
⇒ 10P - 4000 = 6P
⇒ 10P - 6P = 4000
⇒ 4P = 4000
⇒ P = Rs. 1000
∴ The principal is Rs. 4000.