What sum will yield Rs. 1125 as simple interest in 2 years at 9% per annum?

Answer

To find the principal amount (the sum) that will yield Rs. 1125 as simple interest in 2 years at 9% per annum, we can use the formula for simple interest:

### Step 1: Write down the formula for Simple Interest
The formula for Simple Interest (SI) is given by:
\[ SI = \frac{P \times R \times T}{100} \]
where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount (the sum we need to find)
- \( R \) = Rate of interest per annum
- \( T \) = Time in years

### Step 2: Substitute the known values into the formula
From the question:
- \( SI = 1125 \)
- \( R = 9\% \)
- \( T = 2 \) years

Substituting these values into the formula gives:
\[ 1125 = \frac{P \times 9 \times 2}{100} \]

### Step 3: Simplify the equation
First, simplify the right side:
\[ 1125 = \frac{P \times 18}{100} \]

### Step 4: Cross-multiply to solve for \( P \)
Cross-multiplying gives:
\[ 1125 \times 100 = P \times 18 \]
\[ 112500 = P \times 18 \]

### Step 5: Isolate \( P \)
Now, divide both sides by 18 to find \( P \):
\[ P = \frac{112500}{18} \]

### Step 6: Calculate \( P \)
Now, performing the division:
\[ P = 6250 \]

### Conclusion
The principal amount (the sum) that will yield Rs. 1125 as simple interest in 2 years at 9% per annum is Rs. 6250.

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