Question

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/- ?​

Answer 1

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/-