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Find the principal that will gain Rs. 84 interest in 2 years at 4% per annum?
  1. Rs. 505/-
  2. Rs. 1050/-
  3. Rs. 1000/-
  4. None of these
Explanation

To find the principal (P), use the formula:

Simple Interest (SI) = (P × Rate × Time) / 100

Rearrange the formula to solve for P:

P = (SI × 100) / (Rate × Time)

P = (84 × 100) / (4 × 2)

P = 1050

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