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What sum of money should be invested in a 5 years time deposit account to obtain an interest of 250 per annum ? (Rate of interest is 10% pe…

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What sum of money should be
invested in a 5 years time deposit account to obtain an interest of 250 per annum ? (Rate of interest is 10% per
annum)
  • A2,500
  • B25, 000
  • C12, 500
  • D20,000
Answer not set

Discussion 1

0
CCommunity
Simple Interest = 250*5=12500

, Time = 5 years, Rate = 10%, Principle = ?

By formula,

SI=P*R*T/100,

12500=P*10*5/100,

P=25000