If ₹1000 is invested for two years at

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Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

If ₹1000 is invested for two years at simple interest at the rate of 12.5% per annum, then what is the amount?

Options:

₹1125

₹1250

₹1325

₹1275

Correct Answer:

₹1250

Explanation:

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