The sum of money that will yield Rs. 60 as simple interest at the rate of 6 % per annum in 5 years is

Options

A. Rs. 200
B. Rs. 225
C. Rs. 175
D. Rs. 300

Answer

To find the sum of money (principal) that will yield Rs. 60 as simple interest at the rate of 6% per annum in 5 years, we can use the formula for simple interest:

### Step-by-Step Solution:

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

2. **Substitute the Known Values**:
From the problem, we know:
- \( SI = 60 \) (the interest earned)
- \( R = 6\% \) (the rate of interest)
- \( T = 5 \) years (the time period)

Plugging these values into the formula gives:
\[ 60 = \frac{P \times 6 \times 5}{100} \]

3. **Simplify the Equation**:
Rearranging the equation to isolate \( P \):
\[ 60 = \frac{30P}{100} \]
This simplifies to:
\[ 60 = \frac{P}{10} \]

4. **Solve for Principal (P)**:
To find \( P \), multiply both sides by 10:
\[ P = 60 \times 10 \]
\[ P = 600 \]

5. **Final Result**:
The sum of money (principal) that will yield Rs. 60 as simple interest at the rate of 6% per annum in 5 years is Rs. 600.