The total amount A is the sum of the principal P and the simple interest SI. Substituting P = 10000 and SI = 2000, we get A = 10000 + 2000 = 12000 rupees.

Simple Interest * $P \rightarrow \text{Principal}$ * $R \rightarrow \text{Rate}$ * $T \rightarrow \text{Time}$ $\text{SI} = \frac{P \times R \times T}{100}$ $A = P + \text{SI}$ Example * $P = \text{₹}10{,}000$ * $R = 10\%$ * $T = 2\text{ years}$ * $\text{SI} = \text{₹}2{,}000$ * $\text{Amount} = \text{₹}12{,}000$ Calculation: Given: $P = \text{₹}10{,}000$ , $R = 10\%$ , $T = 2\text{ years}$ $\text{SI} = \frac{10{,}000 \times 10 \times 2}{100}$ $\text{SI} = 1{,}000 \times 2$ $\text{SI} = \text{₹}2{,}000$ Calculating Amount: $A = 10{,}000 + 2{,}000$ $A = \text{₹}12{,}000$

Answer: Simple Interest = ₹2,000 and Amount = ₹12,000

Step-by-step solution

Step 1: State given values and formulas

We identify the given parameters from the problem: the principal $P$ is $10000$ rupees, the rate of interest $R$ is $10\%$ , and the time period $T$ is $2$ years. The standard formula for simple interest is $\text{SI} = \frac{P \times R \times T}{100}$ .

Step 2: Calculate Simple Interest

Substitute $P = 10000$ , $R = 10$ , and $T = 2$ into the simple interest formula. Simplifying the fraction by dividing the numerator and denominator by $100$ gives $1000 \times 2 = 2000$ . Thus, the simple interest is $\text{₹}2000$ .

Step 3: Calculate Total Amount

The total amount $A$ is the sum of the principal $P$ and the simple interest $\text{SI}$ . Substituting $P = 10000$ and $\text{SI} = 2000$ , we get $A = 10000 + 2000 = 12000$ rupees.

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