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How much investment is required to yield an Annual income of Rs.420 at 7% p.a. Simple interest.

  • a)
    Rs.6,000

  • b)
    Rs.6,420

  • c)
    Rs.5,580

  • d)
    Rs.5,000

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
How much investment is required to yield an Annual income of Rs.420 at...
Given data:
- Annual income = Rs.420
- Rate of interest = 7%
- Type of interest = Simple interest

To find: Investment required to yield this income

Formula for Simple interest:
Simple interest = (P * R * T) / 100
where,
P = Principal amount
R = Rate of interest
T = Time period

We can rearrange the formula to find the Principal amount:
P = (100 * SI) / (R * T)

Substituting the given values, we get:
P = (100 * 420) / (7 * 1) = Rs.6,000

Therefore, the investment required to yield an annual income of Rs.420 at 7% p.a. Simple interest is Rs.6,000.

Answer: Option A (Rs.6,000)
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How much investment is required to yield an Annual income of Rs.420 at...
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How much investment is required to yield an Annual income of Rs.420 at 7% p.a. Simple interest.a)Rs.6,000b)Rs.6,420c)Rs.5,580d)Rs.5,000Correct answer is option 'A'. Can you explain this answer?
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