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.