Correct Answer - Option 2 : Rs.400

**Given**

Amount = Rs. 416

Time = 1 year 4 months

Rate of interest = 3%

**Formula used**

SI = (P × R × T)/100

Amount(A) = P + SI

SI → Simple interest, P → Principal, R → Rate, T → Time

**Calculation**

Time = 1 year 4 months = 4/3 years

A = P + (P × R × T)/100

⇒ 416 = P + (P × 3 × 4/3)/100

⇒ 41600 = 100P + 4P

⇒ 104 P = 41600

⇒ P = Rs. 400