On investing a certain amount of money in a mutual fund at an interest rate of 5% for a period of 5 years, simple interest obatined was ₹ 500. Find the orginal amount invested.

4000

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3000

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2000

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1000

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Solution

The correct option is C 2000
Given:
Rate of interest (R) = 5%
Simple interest = ₹ 500
Time period(T) is 5 years.

Let the orginal amount invested be P.

Simple interest S.I = $\frac{P R T}{100} 500 = \frac{P \times 5 \times 5}{100} P = \frac{500 \times 100}{25} P = ₹ 2000$

Hence, the orginal amount invested or the principal is ₹ 2000.

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On investing a certain amount of money in a mutual fund at an interest rate of 5% for a period of 5 years, simple interest obatined was ₹ 500. Find the orginal amount invested.

The correct option is C 2000Given: Rate of interest (R) = 5% Simple interest = ₹ 500 Time period(T) is 5 years. Let the orginal amount invested be P. Simple interest S.I = PRT100500=P×5×5100P=500×10025P=₹2000 Hence, the orginal amount invested or the principal is ₹ 2000.