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

It is given that the investment earns 4 paisa per rupee invested. Now, 4 paisaa means 0.04 rupees. So, the ratio as per the "unitary method" is:

$\frac{0.04}{1}$.....................Equation 1

Now, if want to find the what the investment is equal to if the interest earned is Rupees 100, then we will have to assume that the investment is x. Since the ratio will remain the same as in Equation 1, we will get:

$\frac{0.04}{1}=\frac{100}{x}$

Thus, $x=\frac{100}{0.04}=2500$.

Therefore, if the interest earned by an investment is rs.100,then the investment is equal to Rs 2500.

Answer 2

Answer:

2500

Step-by-step explanation:

Interest rate = Interest/principal

                    =  4ps/100ps

                     = 4%

Given that R% (P) = Rs.100 ⇒4%(P) = 100 ⇒P = 2500