Question

What sum will yield a simple interest of $250 at a rate of 8% per annum in 5 years?​

Answer 1

Answer:

Answer is 400 .

Step-by-step explanation:

Simple interest=P×T×R/100

250×5×8/100 =400 Ans//

Answer 2

Given,

Simple interest = $250,

Rate = 8% per annum,

Time = 5 years.

To find,

Sum, or the principal amount.

Solution,

We can solve this problem simply by following the below process.

The simple interest is given by the following formula,

$SI=\frac{P\times r\times t}{100}$

Where,

P = Principal,

r = Annual rate of interest (%), and,

t = time in years.

To find the principal or the initial sum, we can simply rearrange this formula, that is,

$P=\frac{SI\times 100}{r\times t}$

Substituting the given values,

$P =\frac{250 \times 100}{8\times 5}$

On solving, we get,

P = $625.

Therefore, the sum for the given condition will be $625.