Question

Calcite the simple interest in 25000 for 5yrs at 121/2% per annum

Answer 1

To calculate the simple interest, you can use the formula:

\[
\text{Simple Interest} = \frac{P \times R \times T}{100}
\]

Where:
- \( P \) = Principal amount (initial investment)
- \( R \) = Rate of interest per annum
- \( T \) = Time in years

Given:
- \( P = 25000 \)
- \( R = 12.5\% = 12.5 \)
- \( T = 5 \)

Now, substituting the values into the formula:

\[
\text{Simple Interest} = \frac{25000 \times 12.5 \times 5}{100}
\]

Calculating:

\[
\text{Simple Interest} = \frac{25000 \times 12.5 \times 5}{100} = \frac{1562500}{100} = 15625
\]

Thus, the simple interest is **15,625**.