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

1 answer

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.