Simple interest on a sum for 12 months at the rate of 25% per annum is Rs 935.What is the value (in Rs) of sum?

Options

A. 3740
B. 3200
C. 4410
D. 4720

Answer

To find the principal sum (P) based on the given simple interest (SI), we can use the formula for simple interest:

\[ SI = \frac{P \times r \times t}{100} \]

Where:
- \( SI \) = Simple Interest
- \( P \) = Principal amount (the sum we need to find)
- \( r \) = Rate of interest (per annum)
- \( t \) = Time (in years)

Given:
- \( SI = 935 \) (the simple interest for 12 months)
- \( r = 25\% \) (the rate of interest)
- \( t = 1 \) year (since 12 months is equal to 1 year)

### Step 1: Substitute the known values into the formula

We can rearrange the formula to solve for \( P \):

\[ P = \frac{SI \times 100}{r \times t} \]

Substituting the known values:

\[ P = \frac{935 \times 100}{25 \times 1} \]

### Step 2: Calculate the denominator

Calculate \( 25 \times 1 \):

\[ 25 \times 1 = 25 \]

### Step 3: Substitute back into the equation

Now substitute this value back into the equation:

\[ P = \frac{935 \times 100}{25} \]

### Step 4: Calculate \( 935 \times 100 \)

Calculate \( 935 \times 100 \):

\[ 935 \times 100 = 93500 \]

### Step 5: Divide by 25

Now divide \( 93500 \) by \( 25 \):

\[ P = \frac{93500}{25} \]

Calculating this gives:

\[ P = 3740 \]

### Conclusion

The value of the principal sum (P) is Rs 3740.

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