A person deposits Rs 25000 in a firm who pays an interest at the rate of 20% per annum. Calculate the income he gets from it annually.
Given Principal amount P = Rs 25000
Time ** T = 1 year
Rate of interest R = 20% p.a.
We know that simple interest = (P × T × R)/100
On substituting these values in above equation we get
SI = (25000 × 1 × 20)/100
= Rs 5000
