The sum which will earn a simple interest of Rs. 126 in 2 years at 14% per annum is

Options

A. Rs. 394
B. Rs. 395
C. Rs. 450
D. Rs. 540

Answer

To find the sum (principal amount) that will earn a simple interest of Rs. 126 in 2 years at a rate of 14% per annum, we can use the formula for simple interest:

### Step-by-Step Solution:

1. **Understand the Formula for Simple Interest (SI)**:
The formula for simple interest is given by:
\[ SI = \frac{P \times R \times T}{100} \]
where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount (the sum we want to find)
- \( R \) = Rate of interest (in percentage)
- \( T \) = Time (in years)

2. **Substitute the Known Values**:
We know:
- \( SI = 126 \)
- \( R = 14\% \)
- \( T = 2 \) years

Substitute these values into the formula:
\[ 126 = \frac{P \times 14 \times 2}{100} \]

3. **Simplify the Equation**:
First, simplify the right side:
\[ 126 = \frac{28P}{100} \]

4. **Multiply Both Sides by 100**:
To eliminate the fraction, multiply both sides by 100:
\[ 12600 = 28P \]

5. **Solve for P**:
Now, divide both sides by 28 to find \( P \):
\[ P = \frac{12600}{28} \]

6. **Calculate the Value**:
Perform the division:
\[ P = 450 \]

### Final Answer:
The principal amount (sum) that will earn a simple interest of Rs. 126 in 2 years at 14% per annum is **Rs. 450**.

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