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19 vote

What sum of money should be invested in a 5 years time deposit account to obtain an interest of 250 per annum ? (Rate of interest is 10% per annum)

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What sum of money should be invested in a 5 years time deposit account to obtain an interest of 250 per annum ? (Rate of interest is 10% per annum)
1). 2,500
2). 25, 000
3). 12, 500
4). 20,000


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1 answers

28 vote
Answered by on | Votes 28 |

Simple Interest = 250*5=12500

, Time = 5 years, Rate = 10%, Principle = ?

By formula, 

SI=P*R*T/100,

12500=P*10*5/100,

P=25000

Accepted Answer

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