Sam has to invest some money in a bank offering Simple Interest at $10 %$ rate of interest, how much principal amount should Sam invest for two years to get $$ 250$ as interest?
250

Open in App

Solution

The correct option is A 250
Rate of interest $R % = 10 %$ per annum
Formula for Simple interest $S . I . = \frac{P \times R \times t}{100}$
Simple Interest earned after a period of $t = 2$ yrs $= $ 250$
Now, we need to calculate the Principal amount for which $S . I . = $ 250$
$\Rightarrow 250 = \frac{P \times 10 \times 2}{100}$
$\Rightarrow P = \frac{250 \times 100}{20} = $ 1250$
Thus, Sam should invest $$ 1250$ to earn an interest of $$ 250$

Suggest Corrections

Similar questions

Q. Q. Shakil invests a certain amount of money in banks A and B. Bank A offers simple interest at 9% p.a. And Bank B offers 8% compound interest p.a. The interest accrued on the amount invested in bank A in 3 years is 4590 and the total investment is 44000. What is the interest accrued on the amount invested in bank B for the same period of time?

Q. Mr. Peter invests an amount of Rs.

12200

at the rate of

2

p.c.p.a. for

4

years to obtain a simple interest . Later he invests the principal amount as well as the amount obtained as simple interest for another

3

years at the same rate of interest. What amount of simple interest will he obtain at the end of the last

3

years?

The simple interest for certain amount of money becomes equal to money invested after 16 years 6 months. In how many years the simple interest becomes 2 times money invested?

Q. Sam invested a certain amount of money and got back an amount of Rs.

5000

. If the bank paid an interest of Rs.

1700

, find the amount Sam invested.

Alex’s father invested some amount of money in the bank on simple interest. The amount grew to ₹36,000 at the end of 2 years. He waited for another 5 years and got a final amount of ₹51,000. What was the principal amount that he invested at the beginning?

Join BYJU'S Learning Program

Sam has to invest some money in a bank offering Simple Interest at 10% rate of interest, how much principal amount should Sam invest for two years to get $ 250 as interest?250

Sam has to invest some money in a bank offering Simple Interest at $10 %$ rate of interest, how much principal amount should Sam invest for two years to get $$ 250$ as interest?
250