If ₹1000 is invested for two years at simple interest at the rate of 12.5% per annum, then what is the amount?
Answer & explanation
Correct answer: option 2
By using formulas ,
Amount = Principal + Simple interest
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
= \(\frac{1000 × 12.5 × 2}{100}\)
= 250
Amount = 1000 + 250
= 1250