An investment earns 4 paise per rupee invested. If at the end of the year, the interest earned by investment is rs. 100, then the investment is equal to?

It is given that in the question

Investment earns 4 paisa per rupee invested.

Interest earned by an investment is Rs. 100

To find: Investment

We know, 1 rupee = 100 paisa

∴ Rate of Interest = (Interest / Principal) * 100

= (4ps / 100ps) * 100

= 4%

From the question we can write that,

R% * (Principal or Investment) = Rs.100

Or, (4%) * (Principal or Investment) = Rs. 100

Or, (4/100) * (Principal or Investment) = Rs. 100

Or, Principal or Investment = (100 * 100) / 4

Or, Principal or Investment = Rs. 2500

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