Multiple choice

What amount of principal invested at 5% for 3 months will yield a simple interest of Rs. 25?

  1. Rs.2000

  2. Rs.2200

  3. Rs.2500

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = (P * R * T) / 100. 25 = (P * 5 * (3/12)) / 100. 25 = (P * 5 * 0.25) / 100. 2500 = 1.25P. P = 2000.

AI explanation

Using the simple interest formula, Simple Interest equals Principal times Rate times Time divided by 100. The time of 3 months is 3 over 12 of a year, so 25 equals Principal times 5 times 0.25 divided by 100. Solving this equation gives 25 equals 0.0125 times Principal. Dividing 25 by 0.0125 gives the principal of Rs. 2000.

Keep practicing — related questions