The post office savings bank pays an interest of 5% per annum. How much should be deposited to earn an annual simple interest of Rs.500/- ?
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Answer:
Rs.10,000/-
Explanation:
Simple interest formula is given as:
SI = (P × R ×T) / 100
Where SI = simple interest
P = principal(money invested/money borrowed/loan)
R = interest rate (in percentage)
T = time duration (in years)
here, t= 1 year, R = 5 %, SI = 500, P = money deposited = ?
500 = (P*5*1)/100
upon solving, we will get,
P = Rs.10,000/-
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