What principal earns ₱900 simple interest in 2 years at 4.5% per year?

Correct answer: A. ₱10,000

Principal = interest ÷ (rate × time) = 900 ÷ (0.045 × 2) = 900 ÷ 0.09 = ₱10,000. Check: ₱10,000 × 0.045 × 2 = ₱900. Rearranging I = P × r × t gives P = I ÷ (r × t).

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Answer and explanation

The correct answer is A. ₱10,000

Principal = interest ÷ (rate × time) = 900 ÷ (0.045 × 2) = 900 ÷ 0.09 = ₱10,000. Check: ₱10,000 × 0.045 × 2 = ₱900. Rearranging I = P × r × t gives P = I ÷ (r × t).

Topic: Percentage and Interest Problems MCQs · Subject: Numerical Ability