Question

An investment earns 4 paisa per rupee invested. If at the end of the year, the interest earned by an investment is rs. 100, then the investment is equal to:

Answer 1

Answer:

The investment is equal to Rs. 2500.

Step-by-step explanation:

Given data:  

Investment earns 4 paisa per rupee invested.

Interest earned by an investment is Rs. 100

To find: Investment  

We know, 1 rupee = 100 paisas

∴ Rate of Interest = (Interest / Principal) * 100

       = (4ps / 100ps) * 100

        = 4%

From the question we can write that,

R% * (Principal or Investment) = Rs.100

Or, (4%) * (Principal or Investment) = Rs. 100

Or, (4/100) * (Principal or Investment) = Rs. 100

Or, Principal or Investment = (100 * 100) / 4

Or, Principal or Investment = Rs. 2500