Question

Find the sum when interest is 500 at 10% p.a for 5 years​

Answer 1

Answer:

Sum x 10 /100 x 5 = 500

Sum x 50 /100 = 500

Sum = 500 x 100 /50 = 1, 000 Rs.

Answer 2

Solution!!

The concept of simple interest has to be used here. The interest, time and rate of interest is given. We have to find the principal.

Interest = Rs 500

Principal (P) = ?

Rate of interest (R) = 10%

Time (T) = 5 years

We can find the principal by using the interest formula.

Interest = (P × R × T)/100

500 = (P × 10 × 5)/100

500 × 100 = P × 10 × 5

50000 = 50P

50000 ÷ 50 = P

P = Rs 1000

Hence, the principal is Rs 1000.

The questioner may ask you to find the amount also. So, here's the formula to find the amount.

Amount = Principal + Interest