Question

What sum of money will have to be invested and for how many years in order to get simple interest of Rs 10,000 at the rate of 10 p.c.p.a? (Write three pairs of values for P and N)

Answer 1

Interest = Rs 10,000
Rate of interest = 10 p.c.p.a
Simple Interest$=\frac{\mathrm{Principal}\times \mathrm{Rate}\times \mathrm{Time}}{100}$
$$\begin{gathered} \Rightarrow 10,000=\frac{p\times 10\times n}{100} \\ \Rightarrow 10,000=\frac{p\times n}{10} \end{gathered}$$
⇒ p × n = 1,00,000

Possible set of values are
(1) Principal = Rs 50,000
Number of Years = 2 (as 50000$\times$2 = 100000)

(2) Principal = Rs 1,00,000
Number of Years = 1 (as 100000$\times$1 = 100000)

(3) Principal = Rs 10,000
Number of Years = 10 (as 10000$\times$10 = 100000)