Find S.I on Rs. 5000 at the rate of interest 5% p.a for 5 years.

Answer

To find the Simple Interest (S.I.) on Rs. 5000 at the rate of interest of 5% per annum for 5 years, we will use the formula for Simple Interest:

**Formula:**
\[ \text{S.I.} = \frac{P \times R \times T}{100} \]

Where:
- \( P \) = Principal amount (the initial amount of money)
- \( R \) = Rate of interest (in percentage)
- \( T \) = Time (in years)

**Step 1: Identify the values**
- Principal \( P = 5000 \) Rs
- Rate \( R = 5\% \)
- Time \( T = 5 \) years

**Step 2: Substitute the values into the formula**
\[ \text{S.I.} = \frac{5000 \times 5 \times 5}{100} \]

**Step 3: Calculate the multiplication in the numerator**
\[ 5000 \times 5 = 25000 \]
\[ 25000 \times 5 = 125000 \]

**Step 4: Divide by 100**
\[ \text{S.I.} = \frac{125000}{100} = 1250 \]

**Final Answer:**
The Simple Interest on Rs. 5000 at the rate of 5% per annum for 5 years is **Rs. 1250**.

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