Maths-
General
Easy

Question

In how many years will a sum of Rs 5000 yield a simple interest of Rs 250 at the rate of 5% per annum?

Hint:

Use the formula for simple interest and then find the number of years.

The correct answer is: Rs 250


    Complete step by step solution:
    We calculate simple interest by the formula,S I equals fraction numerator P T R over denominator 100 end fraction…(i)
    where P is Principal amount, T is number of years and R is rate of interest
    Here, we have R = 5%,SI = 250,P = 5000 and T = ?
    On substituting the known values in (i), we get 250 equals fraction numerator 5000 cross times T cross times 5 over denominator 100 end fraction
    table attributes columnalign right left right left right left right left right left right left columnspacing 0em 2em 0em 2em 0em 2em 0em 2em 0em 2em 0em end attributes row cell not stretchy rightwards double arrow T equals fraction numerator 250 cross times 100 over denominator 5000 cross times 5 end fraction end cell row cell not stretchy rightwards double arrow T equals 25000 over 25000 equals 1 end cell end table
    Hence, the sum of Rs 5000 earns a simple interest of Rs 250 in one year.

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