M borrowed some money for 1 year at certain simple interest. But the interest rate was increased to 2% which amounted to Rs. 120 . Find the principal amount.
A. Rs. 4,000
B. Rs. 5,000
C. Rs. 6,000
D. Rs. 7,000

Options

A. C
B. D
C. B
D. A

Answer

To solve the problem, we need to find the principal amount (P) that M borrowed, given that the simple interest (SI) for one year at an increased rate of 2% amounted to Rs. 120.

### Step-by-Step Solution:

1. **Identify the given values:**
- Simple Interest (SI) = Rs. 120
- Rate (R) = 2%
- Time (T) = 1 year

2. **Use the formula for Simple Interest:**
\[ \text{SI} = \frac{P \times R \times T}{100} \]

3. **Substitute the known values into the formula:**
\[ 120 = \frac{P \times 2 \times 1}{100} \]

4. **Simplify the equation:**
\[ 120 = \frac{2P}{100} \]

5. **Cross-multiply to solve for P:**
\[ 120 \times 100 = 2P \]
\[ 12000 = 2P \]

6. **Divide both sides by 2 to isolate P:**
\[ P = \frac{12000}{2} \]
\[ P = 6000 \]

7. **Conclusion:**
The principal amount M borrowed is Rs. 6000.

### Final Answer:
The principal amount is **Rs. 6000** (Option C).

---