Question

If Rs. 1000 is invested for two years at simple interest at the rate of 12.5% per annum, then what is the amount?

• A. Rs.1250
• B. Rs.1325
• C. Rs.1275
• D. Rs.1125

Answer 1

Answer:

A. Rs.1250

Given:

Principal = Rs 1000

Time = 2 years

Rate = 12.5% p.a

Concept used:

Amount = SI + P

$SI=\frac{PRT}{100}$

P → princiapl R → rate of interest T → time

Calculation:

$⇒Simple interest=\frac{(1000\times{12.5}\times{2})}{100}$

⇒ Simple interest = 250

⇒ Amount after 2 years = 1000 + 250 = Rs. 1250

∴ The amount is Rs. 1250.