Correct Answer - Option 1 : Rs. 6,000
Given:
The amount of compound interest = Rs. 6300
Rate = 10%
Time = 2 years
Concept used:
C.I. = P {(1 + R/100 )T – 1}
S.I. = (P × R × T)/100
S.I. → Simple interest
P → Principal
T → Time
R → Rate%
A → Amount
Calculations:
C.I. = P{(1 + R/100)T – 1}
⇒ 6300 = P{(1 + 10/100)2 – 1}
⇒ 6300 = P × {(11/10) × (11/10) – 1}
⇒ 6300 = P × (21/100)
⇒ P = Rs. 30,000
S.I. = (P × R × T)/100
⇒ (30000 × 10 × 2)/100
⇒ Rs. 6,000
∴ The simple interest is Rs. 6,000