Question

An investment earns $ 4 $ paise per rupee invested. At the end of the year, the interest earned by invested is rs $ 100 $ , the investment is equal to?

Answer 1

Hint: As we know that the above given question is a word problem. A problem is a mathematical question written as one sentence or more describing a real life scenario where that problem needs to be solved by the way of mathematical calculation. We can solve the given problem by applying the method of formula.

Complete step-by-step answer:
We need to first understand the requirement of the question which is the principal or investment.
We have been given that investment earns $ 4 $ paisa per rupee. We know that $ 1rupee = 100\,paisa $ .
We know the formula that Rate of interest $ = \dfrac{{\operatorname{int} erest}}{{\Pr incipal}} \times 100 $ .
So we can write the above as $ \dfrac{{4ps}}{{100}} \times 100 = 4\% $ .
Now from the question we can write that rate percent $ \times $ principal or investment $ = rs100 $ .
So we can write $ 4\% \times Investment = 100 $ . Now we solve it:
 $ \dfrac{4}{{100}} \times Investment = 100 \Rightarrow investment = \dfrac{{100 \times 100}}{4} $ .
So it gives us the value investment $ = Rs2500 $ .
Hence the required Principal or Investment is Rs $ 2500 $ .
So, the correct answer is “Rs $ 2500 $ .”.

Note: We should always be careful what the question is asking. Based on the requirement and by observing all the necessary information that is already available in the question we gather the information and then create an equation or by unitary method whichever is applicable, then we solve the problem and then verify the answer by putting the value in the problem and see whether we get the same answer or not.