If Mathew wants to earn a simple interest of ₹ 500 by lending money to his friend at an interest of $10 %$ per annum for 5 years, then the money that he has to lend will be

Rs. 1000

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₹1300

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₹1200

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₹1000

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Solution

The correct option is D
₹1000

We know that S.I. = $\frac{P R T}{100}$

where, S.I. is the simple interest, P is the principal, R is the rate of interest per annum and T is the time(number of years).

Given S.I. = ₹ 500, R = 10%, T = 5 years

Then by using the above formula, we get,

$P = \frac{S . I . \times 100}{T \times R} = \frac{500 \times 100}{5 \times 10} = ₹ 1000$ .

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If Mathew wants to earn a simple interest of ₹ 500 by lending money to his friend at an interest of 10% per annum for 5 years, then the money that he has to lend will be

If Mathew wants to earn a simple interest of ₹ 500 by lending money to his friend at an interest of $10 %$ per annum for 5 years, then the money that he has to lend will be