Option b is correct.
Simple interest is calculated with the following formula-
S.I. = P × R × T, where
P = Principal,
R = Rate of Interest in % per annum, and therefore is written as r/100.
T = Time, generally calculated as the number of years.
Principal- The principal is the amount that is borrowed from the lender. The principal is described by P.
Rate- Rate is the rate of interest at which the principal amount is lend to someone for a definite time. The rate of interest is described by R.
Time- Time is the period for which the principal amount is lend to someone. Time is described by T.
Amount- The total returnable amount (the principal amount borrowed along with the interest amount), is known as Amount.
Simple interest is a procedure to measure the amount of interest charged on a total at a given rate of interest and for a given period of time. In simple interest, the principal amount remains same.
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