The simple interest on a certain sum of for two years is Rs 1000 at the rate 10% per annum. What is the amount after these two years?

Options

A. Rs 7000
B. Rs 6500
C. Rs 5500
D. Rs 6000

Answer

To solve the problem, we need to find the principal amount (P) using the formula for simple interest (SI). The formula for simple interest is:

\[ \text{SI} = \frac{P \times R \times T}{100} \]

Where:
- SI = Simple Interest
- P = Principal amount
- R = Rate of interest (per annum)
- T = Time (in years)

Given:
- SI = Rs. 1000
- R = 10%
- T = 2 years

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

We can rearrange the formula to solve for P:

\[ P = \frac{\text{SI} \times 100}{R \times T} \]

Now substituting the known values:

\[ P = \frac{1000 \times 100}{10 \times 2} \]

### Step 2: Calculate the principal amount

Calculating the denominator:

\[ 10 \times 2 = 20 \]

Now substituting back:

\[ P = \frac{100000}{20} \]

Calculating the principal:

\[ P = 5000 \]

### Step 3: Calculate the total amount after 2 years

The total amount (A) after 2 years can be calculated using the formula:

\[ A = P + \text{SI} \]

Substituting the values we have:

\[ A = 5000 + 1000 \]

Calculating the total amount:

\[ A = 6000 \]

### Final Answer

The amount after these two years is Rs. 6000.

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