Question

What sum of money will earn ₹ 500 as simple interest in 1 year at 5% per annum?

Options

• 50000

• 30000

• 10000

• 5000

Answer 1

10000

Explanation;

Hint:

Let sum of money be ‘P’

Time period (n) is given as 1 yr.

Rate of simple interest (r) is given as 5% p.a

∴ As per formula for simple interest.

S.I = `("P" xx "r" xx "n")/100 `

= `("P" xx 5 xx 1)/100`

= 500

∴ P × 5 × n = 500 × 100

∴ P = `(500 xx 100)/5`

= 100 × 100

= 10,000