Mathematics for FinanceMTP Nov 18Question 1274 of 512
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The simple interest of P%\displaystyle P\% for P\displaystyle P years will be P\displaystyle P on a sum of:

Options

APP100\displaystyle P \frac{P}{100}
B100PP\displaystyle 100 \frac{P}{P}
CP(P100+1)\displaystyle P \left( \frac{P}{100} + 1 \right)
D(100P−1)\displaystyle \left( \frac{100}{P} - 1 \right)
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Correct Answer

✅ Option b — 100PP\displaystyle 100 \frac{P}{P}

All Options:

  • APP100\displaystyle P \frac{P}{100}
  • B100PP\displaystyle 100 \frac{P}{P}
  • CP(P100+1)\displaystyle P \left( \frac{P}{100} + 1 \right)
  • D(100P−1)\displaystyle \left( \frac{100}{P} - 1 \right)

Detailed Solution & Explanation

**Derivation of Sum** Given: - Simple Interest (SI\displaystyle SI) = P\displaystyle P - Time (T\displaystyle T) = P\displaystyle P years - Rate of Interest (R\displaystyle R) = P%\displaystyle P\% per annum **Step 1: Set up the Simple Interest formula** SI=Sum×R×T100SI = \frac{\text{Sum} \times R \times T}{100} P=Sum×P×P100P = \frac{\text{Sum} \times P \times P}{100} P=Sum×P2100P = \text{Sum} \times \frac{P^2}{100} **Step 2: Solve for Sum** Sum=P×100P2\text{Sum} = P \times \frac{100}{P^2} Sum=100P\text{Sum} = \frac{100}{P} Hence, **Option B** is the correct answer.

More Questions from Mathematics for Finance

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If Rs. 1,000\displaystyle \text{Rs. }1,000 be invested at interest rate of 5%\displaystyle 5\% and the interest be added to the principal every 10\displaystyle 10 years, then the number in years in which it will amount to Rs. 2,000\displaystyle \text{Rs. }2,000 is:

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